Agenda Packet — Salinas City Council, October 22, 2024 (part 2 of 2)

CONTRACTORS
Onyx Paving Company, Inc.
2890 E. La Cresta Ave.

Anaheim Ca 92806
Talley Oil Inc.
12483 Road 29
Madera Ca 93638
Global Road Sealing Inc
10832 Dorothy Ave.

Garden Grove, Ca 92843
CONTRACTOR #1 CONTRACTOR # CONTRACTOR #

DESCRIPTION UNIT
Bid awarded on _________ by Salinas City Council by Resolution No. _______ (NCS) to:
___________________for for the sum of ______________ (BaseBid No. 1 + BID Alternate No. 1 - 4.) All other bids were rejected and bid bonds returned.

Dated this ______ day of _________, 2024
BID Alternate 2: Major Year 3 (Constitution Blvd / N Main St) 17 Construction Coordination / Mobilization; Complete-In-Place 1 LS 20,000$ $ 20,000 $ 2,500.00 $ 2,500.00 $ 1,000.00 $ 1,000.00 $ 5,000.00 $ 5,000.00 18 Implement Sediment Control Plan; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 2,500.00 $ 2,500.00 $ 5,000.00 $ 5,000.00 $ 750.00 $ 750.00 19 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 20,000$ $ 20,000 $ 16,000.00 $ 16,000.00 $ 7,000.00 $ 7,000.00 $ 12,000.00 $ 12,000.00 20 Crack Treatment; Complete-In-Place 16.05 LLM $ 5,250 $ 84,263 $ 4,500.00 $ 72,225.00 $ 5,000.00 $ 80,250.00 $ 6,000.00 $ 96,300.00 BID Alternate 2 - Residential Location R3:
21 Construction Coordination / Mobilization; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 2,500.00 $ 2,500.00 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 22 Implement Sediment Control Plan; Complete-In-Place 1 LS $ 5,000 $ 5,000 $ 2,500.00 $ 2,500.00 $ 1,000.00 $ 1,000.00 $ 750.00 $ 750.00 23 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 10,000$ $ 10,000 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 7,000.00 $ 7,000.00 24 Crack Treatment; Complete-In-Place 3 LLM $ 5,250 $ 15,750 $ 4,500.00 $ 13,500.00 $ 5,000.00 $ 15,000.00 $ 6,000.00 $ 18,000.00 Total BID Alternate 2: Major Yr 3 + Residential Location R3 (ITEMS 17-24) 25 Construction Coordination / Mobilization; Complete-In-Place 1 LS 20,000$ $ 20,000 $ 2,500.00 $ 2,500.00 $ 1,000.00 $ 1,000.00 $ 5,000.00 $ 5,000.00 26 Implement Sediment Control Plan; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 2,500.00 $ 2,500.00 $ 2,000.00 $ 2,000.00 $ 750.00 $ 750.00 27 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 20,000$ $ 20,000 $ 17,500.00 $ 17,500.00 $ 10,000.00 $ 10,000.00 $ 12,000.00 $ 12,000.00 28 Crack Treatment; Complete-In-Place 16.8 LLM $ 5,250 $ 88,200 $ 4,500.00 $ 75,600.00 $ 5,000.00 $ 84,000.00 $ 6,500.00 $ 109,200.00 29 Construction Coordination / Mobilization; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 30 Implement Sediment Control Plan; Complete-In-Place 1 LS $ 5,000 $ 5,000 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 750.00 $ 750.00 31 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 10,000$ $ 10,000 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 7,000.00 $ 7,000.00 32 Crack Treatment; Complete-In-Place 3.1 LLM $ 5,250 $ 16,275 $ 4,500.00 $ 13,950.00 $ 5,000.00 $ 15,500.00 $ 6,500.00 $ 20,150.00 Total BID Alternate 3: Major Yr 4 + Residential Loc. R4: (Items 25-32) $ 175,013 $ 116,725 $ 111,250 $ 141,800
$ 156,850
BID Alternate 3: Major year 4 (N Davis Rd / W. Laurel Dr / E. Boronda Rd / S Sanborn Rd) BID Alternate 3 - Residential Location R4
$ 179,475 $ 119,050 $ 115,500
8/15/2024 J:\p\9981 2024 Pavement Crack Treatment\office\Estimate\BID Tab 2024 crack treatment.xlsx Page 2 of 3 BID OPENING:

AUG. 13, 2024

BID TABULATION
2024 PAVEMENT CRACK TREATMENT
CIP No. 9981
Drawing No.

Project Coordinator: P. Aramkul
Project Manager: TBD
City Clerk ENGINEER'S

ESTIMATE
ITEM ITEM APPROX. UNIT UNIT UNIT UNIT
NO. CODE QUANTITY PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL

CONTRACTORS
Onyx Paving Company, Inc.
2890 E. La Cresta Ave.

Anaheim Ca 92806
Talley Oil Inc.
12483 Road 29
Madera Ca 93638
Global Road Sealing Inc
10832 Dorothy Ave.

Garden Grove, Ca 92843
CONTRACTOR #1 CONTRACTOR # CONTRACTOR #

Dated this ______ day of _________, 2024
BID Alternate 4: Major year 5: (Abbott St)
33 Construction Coordination / Mobilization; Complete-In-Place 1 LS 20,000$ $ 20,000 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 5,000.00 $ 5,000.00 34 Implement Sediment Control Plan; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 $ 750.00 $ 750.00 35 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 20,000$ $ 20,000 $ 7,500.00 $ 7,500.00 $ 4,000.00 $ 4,000.00 $ 12,000.00 $ 12,000.00 36 Crack Treatment; Complete-In-Place 5.65 LLM $ 5,250 $ 29,663 $ 4,500.00 $ 25,425.00 $ 5,000.00 $ 28,250.00 $ 8,000.00 $ 45,200.00 BID Alternate 4: Residential Location R5:
37 Construction Coordination / Mobilization; Complete-In-Place 1 LS 10,000$ $ 10,000 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 2,000.00 $ 2,000.00 38 Implement Sediment Control Plan; Complete-In-Place 1 LS $ 5,000 $ 5,000 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 750.00 $ 750.00 39 Furnish and Install Traffic Control and All Temporary Construction Area Signs and Hardware (Including Removal at End of Project); Complete-In-Place 1 LS 10,000$ $ 10,000 $ 5,000.00 $ 5,000.00 $ 1,000.00 $ 1,000.00 $ 7,000.00 $ 7,000.00 40 Crack Treatment; Complete-In-Place 4.10 LLM $ 5,250 $ 21,525 $ 4,500.00 $ 18,450.00 $ 5,000.00 $ 20,500.00 $ 8,000.00 $ 32,800.00 Total BID Alternate 4: Major Yr 5 + Residential Loc. R5 (Items 33 - 40) 1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
$ 126,188 $ 60,375 $ 58,750 $ 105,500
Addendum No. 1 X X MISSING
$ 629,650 (FOR COMPARISON ONLY)
Proposal X X X
Total BASE BID + BID– Alt No. 1-4 (Items 1-40) $ 800,250 $ 517,650 $ 589,860 Bid Bond X X X
Insurance Certification X X X
Bidder’s Statement of Financial Responsibility Technical Ability and Experience X X X Equal Employment Opportunity Certification X X X
Bidder's Statement Of Subcontractors Part I X X X
Public Contract Code Section 10162 Questionnaire X X X
Public Contract Code Section 10285.1 Statement X X X
Contractor’s Certification of Non-Segregated Facilities X X X Public Contract Code Section 10232 Statement X X X
Debarment and Suspension Certification X X X
Non-Collusion Affidavit X X X
Disclosure of Lobbying Activities X X X
Non-Lobbying Certification for Federal-Aid Contracts X X X ITEMS TO BE SUBMITTED BY LOW BIDDER AND SECOND LOWEST BIDDDER ON/OR WITHIN 5 WORKING DAYS AFTER BID OPENING DATE Bidder's Statement Of Subcontractors Part II
Buy America Certification X X X
Non-Collusion Affidavit of Subcontractor
Contractor Data Universal Numbering System (D-U-N-S) Number

ITEMS TO BE SUBMITTED WITH PROPOSAL ON BID OPENING DATE Exhibit 15-G Local Agency Bidder DBE Commitment
8/15/2024 J:\p\9981 2024 Pavement Crack Treatment\office\Estimate\BID Tab 2024 crack treatment.xlsx Page 3 of 3 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-565, Version: 1
Third Amendment with Environmental Systems, Inc. for HVAC Maintenance Approve a Resolution authorizing the City Manager to execute Third Amendment with Environmental Systems, Inc. for City-Wide HVAC Maintenance Services; and increasing the annual compensation by $100,000 for a revised not to exceed amount of $170,750 to cover other work.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: SEAN SCHMIDT, FACILITIES MANAGER
TITLE: THIRD AMENDMENT WITH ENVIRONMENTAL SYSTEMS, INC.

FOR HVAC MAINTENANCE
RECOMMENDED MOTION:

A motion to approve a resolution:
1) Authorizing the City Manager to execute Third Amendment with Environmental Systems, Inc. for City-Wide HVAC Maintenance Services; and
2) Increasing the annual compensation by $100,000 for a revised not to exceed amount of $170,750 to cover other work.

EXECUTIVE SUMMARY:

The City entered into an agreement with Environmental Systems, Inc. (ESI) on April 4, 2023, for a not-to-exceed annual amount of $53,950 for quarterly HVAC services, plus an hourly rate for emergency call backs. Amendment No. 1 and Amendment No. 2 added $16,800 to the agreement for quarterly HVAC services at the Permit Center increasing the not-to-exceed annual amount to $70,750. Due to numerous unforeseen additional extra work services from the start of the contract term to present day, the contract total will need to be increased by $100,000 to account for the services bringing the not-to-exceed annual compensation to $170,750.

BACKGROUND:

On October 18, 2022, a Request for Proposals (“RFP”) for City HVAC Services was published via Planet Bids, an online bidding tool. A total of 13 vendors were notified, subsequently 2 registered as prospective bidders. A pre-proposal conference, attended by two prospective bidders, was held on October 24. Proposals were due on November 7, 2022, at which time two vendors submitted proposals for evaluation.

An evaluation committee comprised of four cross-departmental City staff members, was formed.

The committee conducted a thorough evaluation of the proposals based on the criteria set forth in the RFP. Respondents’ prices were then evaluated using a points method and a final score assigned to each respondent per, facility group. The Points Method allowed the proposal with the lowest cost to receive the maximum points, on all 4 categories scored. Local vendors were allotted 10%- Page | 2
point increase as identified in the RFP. On April 4, 2023, the City-Wide HVAC Maintenance Service Agreement was awarded to Environmental Systems, Inc. for a not-to-exceed annual compensation of $53,950. On February 20, 2024, Agreement Amendment No. 1 was approved to add the Permit Center at 65 West Alisal for quarterly services for a not-to-exceed annual amount of $70,470. On June 18, 2024, Agreement Amendment No. 2 was approved to correct a miscalculation made in Agreement Amendment No. 1. The not-to-exceed annual amount was approved for $70,750. Since the execution of the contract, ESI has been called back and completed several extra work projects in connection to the HVAC Systems for City Hall, Sherwood Hall, and the Permit Center. Examples of call backs and extra work projects are included in the following:
 Called back to assess the boiler room at City Hall
 Replaced the motor and chiller at Sherwood Hall
 Fabricated and welded new flanged pump elbow and provided and installed new flex at Sherwood Hall. The City received invoice 9265-2 totaling $2,488. Invoice can’t be paid until contract total is increased.
 Provided McQuay service for chiller #1 and tube cleaning at Sherwood Hall. The City received invoice SD12062 totaling $11,918. Invoice can’t be paid until contract total is increased.
 Called back to trouble shoot water heater at Permit Center  Called back to reinitialize ETH BACnet settings and confirmed MSTP/Network configuration at Permit Center
The City facilities requiring HVAC services consist of a mix of recreation centers & office/public buildings. These include the following:

GROUP/CATEGORY FACILITY LOCATION
Facilities City Hall and Rotunda 200 Lincoln Avenue, 93901 Recreation Centers
Community Development
Sherwood Hall 940 N Main Street, 93906
Aquatic Center 1 E Bernal Drive, 93906
Permit Center 65 West Alisal, 93901
CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, Page | 3
this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

NO
STRATEGIC PLAN INITIATIVE:

This item relates to the City Council’s Strategic Plan to have a Well-Planned City and Excellent Infrastructure. It’s the City’s goal to safely and efficiently manage the infrastructure with which we have been entrusted.

DEPARTMENTAL COORDINATION:

The Maintenance Services Division Staff worked with Recreation/Park Division and Engineering Division Staff in the coordination of the services for the various locations in the agreement.

FISCAL AND SUSTAINABILITY IMPACT:

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget
Page
Last Budget
Action (Date,
Resolution)*
1000 50.5232-

63.4100
Outside ServicesMaint & Repairs–
Bldg & Grounds
$34,191 $30,000 325 6/11/24,
22979
1200 55.6243-

63.4100
Outside ServicesMaint & Repairs–
Bldg & Grounds
$45,577 $10,000 201 6/11/24,
22979
1000 80.8003-

63.4100
Outside ServicesMaint & Repairs–
Bldg & Grounds
$30,680 $25,000 243 6/11/24,
22979
1200 55.6249-

63.4010
Outside ServicesMaint &Repairs–
Bldg & Grounds
$40,000 $35,000 208 6/11/24,
22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.

The yearly cost of $70,750 for the City-Wide HVAC Services Agreement for City Hall, Permit Center, Sherwood Hall, and Aquatic Center is funded with General Funds from multiple accounts. Unscheduled/extra work will be funded from the same multiple accounts detailed in the table above. Since the recommended increased amount for unscheduled/extra work for accounts 1200.55.6243-63.4100 and 1000.80.8003-63.4100 are more than the current amounts in the accounts, the corresponding departments will request to increase the amounts by $26,198 during mid-year budget to cover services.

Page | 4
ATTACHMENTS:

Resolution
Original Agreement
Third Agreement Amendment
RESOLUTION NO. _______ (N.C.S.)
A RESOLUTION TO APPROVE AMENDMENT NO. 3 TO ENVIRONMENTAL

SYSTEMS, INC AGREEMENT FOR HVAC SERVICES
WHEREAS, on October 18, 2022, the city conducted a request for proposals ("RFP”) for city wide HVAC services at various facilities; and
WHEREAS, proposals for said work were received at the office ofthe City Clerk at City Hall, 200 Lincoln Avenue, Salinas California until November 7, 2022; and WHEREAS, a total oftwo vendors submitted proposals for evaluation; and WHEREAS, an evaluation committee, comprised of four, cross-departmental City staff members, conducted a thorough evaluation and scoring ofthe proposals based on the criteria set forth in the RFP; and
WHEREAS, using the Point Method each proposal’s cost was evaluated, assigned a score then combined with the evaluation committees’ score (from the RFP criteria), thus providing a final "score" from each vendor per facility; and
WHEREAS, the City and Contractor amended the Agreement to reflect the additional work that will be completed by the end of the contract term and by increasing the annual compensation rate by Sixteen Thousand Eight Hundred Dollars ($16,800) for a total compensation of Seventy Thousand Four Hundred Seventy Dollars. ($70,470); and
WHEREAS, the City and Contractor amended the Agreement to reflect the additional work that will be completed by the end of the contract term and by increasing the annual compensation rate by Two Hundred Eighty Dollars ($280) for a total compensation of Seventy Thousand Seven Hundred Fifty Dollars. ($70,750); and
WHEREAS, the City and Contractor desire to amend the Agreement to reflect the increase of annual compensation by $100,000 for a new annual not-to-exceed amount of $170,750; and WHEREAS, the City Manager will execute this amendment with Environmental Systems, Inc. for unforeseen additional extra work that will be completed by the end of the contract term.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Salinas Municipal Code Section 12-21, in reference to the HVAC services contract authorize the City Manager to execute Agreement Amendment No. 3 for unforeseen additional extra work that will be completed by the end of the contract term by increasing annual rate of compensation by $100,000 for a total not-to-exceed $170,750.

PASSED AND APPROVED this 22nd day of October, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk

Page 1 of 2 ends

Version: November 2023
AGREEMENT —AMENDMENT NO. 3 TO

ENVIRONMENTAL SYSTEMS, INC AGREEMENT FOR HVAC SERVICES
This Amendment No. 3 to the HVAC Services Agreement is entered into this 22nd day of October 2024, by and between the City of Salinas (the “City”) and Environmental Systems Inc., (the “Contractor”) City and Contractor may be individually referred to herein as a “Party” and collectively the City and Contractor may be referred to as the “Parties.”

RECITALS
WHEREAS, pursuant to Resolution No. 22630, the City and Contractor first entered into an agreement for HVAC Services effective April 4th, 2023, for Fifty-Three Thousand Nine Hundred Fifty Dollars ($53,950) to which Contractor agreed to act as and provide certain services to the City for compensation (the “Agreement”); and
WHEREAS, the City and Contractor agreed to amend the Agreement to reflect the additional work that will be completed by the end of the contract term and by increasing the annual compensation rate by Sixteen Thousand Eight Hundred Dollars ($16,800) for a total compensation of Seventy Thousand Four Hundred Seventy Dollars. ($70,470); and
WHEREAS, the City and Contractor agreed to add an additional facility, 65 West Alisal (Permit Center), to the scope of service. Contractor hereby agreed to provide the following services: Quarterly HVAC maintenance service on city buildings; and
WHEREAS, the City and Contractor agreed to further amend the Agreement to reflect the additional work that will be completed by the end of the contract term and by increasing the annual compensation rate by Two Hundred Eighty Dollars ($280) for a total compensation of Seventy Thousand Seven Hundred Fifty Dollars. ($70,750); and
WHEREAS, the City and Contractor desire to further amend the Agreement for unforeseen additional extra work that will be completed by the end of the contract term and by increasing the annual compensation rate by $100,000 for an annual compensation not-to-exceed $170,750.

NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree to further amend the Agreement as follows:

TERMS

1. The total amount of compensation to be paid under the Agreement is hereby increased by $100,000 for a total amount of compensation not to exceed $170,750.

2. All other terms and conditions of the Agreement not specifically amended herein shall remain in full force and effect as originally written and are fully incorporated herein by this reference.

IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Contractor have entered into this Amendment as of the date first written above.

Page 2 of 2 ends

Version: November 2023

CITY OF SALINAS
___________________________________
Rene Mendez, City Manager
APPROVED AS TO FORM:
___________________________________
□ Christopher A. Callihan, City Attorney
□ Rhonda Combs, Assistant City Attorney
Environmental Systems Inc
____________________________________
Printed name: __Gene Enfantino_________
Title: __Corp. Sec._____________________
Agreement for Services v. January 2021 Page 1 of 26
ESI
April 2023

AGREEMENT FOR SERVICES BETWEEN

THE CITY OF SALINAS AND ENVIRONMENTAL SYSTEM INC
HVAC Services
THIS AGREEMENT is executed this 4th day of April 2023, Agreement between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Environmental Systems Inc, a California corporation (Hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Quarterly HVAC maintenance service on city buildings.

Scope of work is further discussed in City’s Request for Proposal for City HVAC services, Attachment B and Contractor’s Proposal dated 10/18/23, Attachment C further explains the requirement from the Department of Industrial Relations.

2. Timeliness. Contractor shall perform all tasks in a timely fashion, as set forth more specifically in Section 3 below. Failure to so perform is hereby deemed a material breach of this Agreement, and City may terminate this Agreement with no further liability hereunder, or the city may agree in writing with Contractor to an extension of time.

3. Term. The work under this Agreement shall commence April 4, 2023 and shall be continue for a period of three years, through April 4, 2026 (Initial Term). City and Contractor have the option to extend the term for five one-year annual renewal extensions provided a written request is received no less than 60days before the end of the initial term unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay, and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, Fifty-Three Thousand Nine Hundred Fifty Dollars ($53,950) annually, plus an hourly rate for emergency call backs (Items C1) as more fully described in title of Contractors fee schedule, Attachment C. Contractor has no right of reimbursement for expenses under this Agreement. Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City.

The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.

5. Meet & Confer. Contractor agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by City to insure timely and adequate performance of this Agreement.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C Agreement for Services v. January 2021 Page 2 of 26
ESI
April 2023

7. Indemnification. Contractor shall hold harmless, defend at its own expense, and indemnify City and its officers, officials, employees, agents, and volunteers from and against all liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

9. Termination. City may terminate this Agreement upon ten days’ written notice. The amount of damages, if any, as a result of such termination may be decided by negotiations between the parties or before a court of competent jurisdiction.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

12. Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto and supersedes any and all prior agreements, whether oral or written, relating to the subject matter thereof. Any modification of the Agreement will be effective only if it is in writing signed by both parties hereto.

13. Validity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated in any way.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

15. Laws. Contractor agrees that in the performance of this Agreement it will comply with all applicable State, Federal and local laws and regulations. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.

DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C Agreement for Services v. January 2021 Page 3 of 26
ESI
April 2023

CITY OF SALINAS
__________________________________
Steven S. Carrigan
City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C Gene Enfantino
Corp. Sec.

Agreement for Services v. January 2021 Page 4 of 26
ESI
April 2023
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO Form CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards): with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate, on an annual basis.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Contractor requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the Contractor shall cause the insurer shall to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C Agreement for Services v. January 2021 Page 5 of 26
ESI
April 2023
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractor’s Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractor’s Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the City.

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

Verification of Coverage
Contractor shall furnish the City with original Certificates of Insurance including an additional insured endorsement and all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

Maintenance of Insurance
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Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Payment bond

2. Performance bond

3. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty, a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

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Attachment B
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Attachment B
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Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.

Penalties for violations may be applied by the DIR pursuant to the Labor Code §1813 and §1815. The Contractor shall indemnify, hold harmless, and defend the City (with counsel reasonably approved by the City) against any claim for damages, compensation, fines, penalties, or other amounts arising out of the failure or alleged failure of any person or entity (including Contractor and its subcontractors) to pay prevailing wages as determined pursuant to Labor Code §1720, and hereby agrees to, §§1771-1774; to employ apprentices pursuant to Labor Code §1777.5 etseq., and/or to comply with the other applicable provisions of Labor Code §1720 etseq., §§1771- 1774, §1777.5 et seq., and the implementing regulations of the DIR in connection with the scope of work. This indemnification section shall survive the expiration of the Term.

The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:

1. Payment of Prevailing Wage Rates: All contractors, including subcontractors, shall pay no less than the prevailing rate of wages (Labor Code §1775), including the rates for holidays and overtime work (Labor Code §§1813 and 1815), to all workers employed in the execution of the contract (Labor Code §1774), pursuant to Labor Code §§1720-1784.

The prevailing rates are those issued as wage determinations by the DIR, for each craft, classification and type of work. The current wage rate information can be found at the DIR’s website at: https://www.dir.ca.gov/oprl/DPreWageDetermination.htm.

Copies of the prevailing rate of per diem wages are on file at City’s Public Works Department (principal place of office). Contractor shall post a copy of the determination of the Director of DIR of the prevailing rate of per diem wages at each job site.

2. Apprentices: Contractor and subcontractors shall employ registered apprentices on this public works Agreement pursuant to Labor Code §1777.5. All contractors on this project (prime and subcontractors) are required to submit the Division of Apprenticeship Standards’ (“DAS”) Public Works Contract Award Information (DAS 140) form to all applicable apprenticeship committees no later than 10 days before commencing work.

Additionally, all contractors are required to request registered apprentices (DAS 142 form).

Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.

3. Certified Payroll Records: All contractors, including subcontractors, must maintain and file certified payroll records (“CPRs”) pursuant to Labor Code §1776. Additionally, all contractors and subcontractors must furnish certified payroll records into the DIR’s Electronic Certified Payroll Reporting (“eCPRs”) database DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C Agreement for Services v. January 2021 Page 25 of 26
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(https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.

4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.

5. Proper Licensing/Registration: All contractors and subcontractors are required to be properly licensed, in accordance with the Provisions of Chapter 9 of Division 3 of the Business and Professions Code and subject to the requirements of §4104 of the Public Contract Code. In addition, all contractors including subcontractors must submit proof of current registration to perform public work, pursuant to Labor Code §1771.1. Contractors are required to be properly licensed and to require all subcontractors to be properly licensed. Penalties for employing workers while unlicensed under Labor Code §1021 and under the California Contractors License Law, found at Business and Professions Code §7000 et. seq.

6. Job Site Notices: Contractors are required to post all required notices (posters) on the job site in an area accessible to all workers, including subcontractors. Posters must be readable and placed in visible areas allowing workers to access the posters before, during, and after work shifts. Jobsites with multiple locations must include a portable poster board to ensure continued access to the information. Posters placed in foreman, supervisor, or employee vehicles, in an offsite job trailer, or inside a temporary restroom do not meet the posting requirement. Posters may be printed from the DIR’s website at:
http://www.dir.ca.gov/wpnodb.html.

7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):

Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.

8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.

9. Acceptance of Fees Prohibited: Contractors and subcontractors are prohibited from accepting fees for registering any person for public work or for filling work orders on public works contracts, pursuant to Labor Code §§1779 and 1780.

10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.

11. Workers’ Compensation: Contractors and subcontractors must be properly insured for Workers’ Compensation under Labor Code §1861. Contractor hereby represents that Contractor is aware of the provisions of Section 3700 of the Labor Code, which require every employee to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor will comply with such provisions before commencing the performance of the work of this agreement.

12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.

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DocuSign Envelope ID: A5EA2ADC-0E05-400D-9567-6FD3DF969F0C City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-573, Version: 1
Salinas Fire Station No. 1 Renovation Project
Approve a Resolution authorizing the Mayor of Salinas to execute an agreement, on behalf of the City, with Kent Construction for the renovation of Fire Station No. 1, in an amount not to exceed the base bid and bid alternate sum plus a 20% contingency in the total amount of $4,238,699.92; and authorizing the City Manager to approve necessary ancillary costs and agreements up to $860,000 to facilitate project completion, bringing the total project cost to not exceed $5,098,699.92; and approving the reallocation of $949,263.28 from CIP 9984 and $1,894,482.87 from CIP 9626 to CIP 9235.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: FIRE DEPARTMENT
FROM: SAMUEL P. KLEMEK, FIRE CHIEF
TITLE: SALINAS FIRE STATION NO. 1 RENOVATION PROJECT
RECOMMENDED MOTION:

It is recommended that the City Council approve a resolution:

1. Authorizing the Mayor of Salinas to execute an agreement, on behalf of the City, with Kent Construction for the renovation of Fire Station No. 1, in an amount not to exceed the base bid and bid alternate sum plus a 20% contingency in the total amount of $4,238,699.92;

2. Authorizing the City Manager to approve necessary ancillary costs and agreements up to $860,000 to facilitate project completion, bringing the total project cost to not exceed $5,098,699.92.

3. Approving the reallocation of $949,263.28 from CIP 9984 and $1,894,482.87 from CIP 9626 to CIP 9235.

EXECUTIVE SUMMARY:

On November 16, 2021, the City Council allocated ARPA funding to support the repair and renovation of public facilities. Following multiple needs assessments, the Salinas Fire Department (SFD) prioritized Fire Station No. 1, which has not undergone any significant repairs to its living quarters since its construction in 1980 and has accrued substantial deferred maintenance. As the busiest station in the City, serving 30% of total calls in Fiscal Year 2023-2024, Station No. 1 requires urgent attention. On August 17, 2024, a request for bids for the renovation work was issued, resulting in four submissions. The SFD has identified the lowest and most responsible bidder and seeks authorization to award a contract.

BACKGROUND:

Salinas Fire Station No. 1 has been a critical asset to the community since 1982. It is the largest and the busiest in the City, handling the highest demand for services and requiring the most staffing and unit hours compared to other stations. In FY 2023-2024, it responded to 30% of the City's total calls, significantly more than the 14% average at other stations.

In April 2022, the City Council allocated ARPA funds for the renovation of public facilities, including fire stations. Subsequently, the Salinas Fire Department began addressing the urgent Page | 2
needs of Station No.1. In September 2023, the City Council adopted the Salinas Fire Department Master Plan, which included an assessment of all fire stations. Station No. 1 was identified as being in poor condition, with deteriorating infrastructure and deferred maintenance issues that had accumulated since its construction. An October 2023 facilities assessment report further prioritized Station No. 1, highlighting critical needs related to carcinogen management, safety, accessibility, and livability. Additional upgrades are required for essential building systems, including station alerting systems, apparatus bay doors, and mechanical, plumbing, and electrical components.

Working in collaboration with RRM Design Group, the Fire Department developed construction documents based on prioritized needs. On August 17, 2024, the renovation project was publicly advertised via PlanetBids. By the September 24, 2024, deadline, SFD received bids from four contractors: Kent Construction, Avila Construction, Diede Construction, and S&H Construction.

Following evaluation, Kent Construction was identified as the lowest and most responsible bidder.

The SFD now seeks Council approval to proceed with executing a contract agreement.

The City Council initially allocated $2.9 million for this project; however, due to rising construction costs, the lowest and most responsible bid for the base bid and bid alternates was received from Kent Construction at $3,532,249.93. The Salinas Fire Department requests 20% for contingency, bringing the total construction cost to $4,238,699.92. In addition to the construction cost, SFD estimates to need an approximate $860,000 for the relocation of staff and operations, permitting, inspections, professional services, and other below-the-line costs. The total project costs are estimated to not exceed $5,098,699.92. In order to complete this project, the SFD is requesting the reappropriation of funds in CIP 9626 Fire Station 7 and in CIP 9984 Fire Training Tower at this time to the CIP 9235 Fire Station Renovation fund. However, staff will work to bring back funding recommendations in the future for these two projects as they become ready.

Renovating Fire Station No. 1 will enhance its operational capabilities and extend the useful life of the facility, enabling the Fire Department to continue delivering critical services to the City of Salinas.

CEQA CONSIDERATION:

Categorical Exemption. The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines under Section 15301, Class 1 (Existing Facilities), as the project involves the repair, maintenance, and minor alteration of an existing public, with no expansion of the current use.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes.

STRATEGIC PLAN INITIATIVE:

This initiative supports the City Council Strategic Plan Initiative of Public Safety.

DEPARTMENTAL COORDINATION:

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The Salinas Fire Department is closely coordinating with the Community Development Department for the permitting of this project. The Finance and Administration Departments will be engaged throughout the duration of the project.

FISCAL AND SUSTAINABILITY IMPACT:

Fund Appropriation Appropriation
Name
Total Appropriation Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
3911 45.9541 Fire Station
Repairs
$1,191,492.50 $1,191,492.50 N/A 11/16/21,
22250
3911 45.9235 Fire Station
Renovations
$1,063,461.27 $1.063,461.27 N/A 11/16/21,
22250
5800 45.9984 Fire Training
Tower
$1,083,006.80 $949,263.28 N/A 6/14/22,
22380
5800 45.9626 Fire Station 7 $1.894,482.87 $1,894,482.87 N/A 11/1/22, 22507
ATTACHMENTS:

Resolution
Kent Construction bid package
Page | 1
RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CONTRACT AWARD FOR SALINAS FIRE STATION NO. 1 RENOVATION PROJECT WHEREAS, the City of Salinas Fire Department (SFD) has identified significant deferred maintenance and aging infrastructure at Fire Station No. 1, which has not undergone major renovations since its construction in 1980; and
WHEREAS, in April 2022, the City Council allocated American Rescue Plan Act (ARPA) funds for the renovation of public facilities, including fire stations, and in September 2023, the City Council adopted the Salinas Fire Department Master Plan, which prioritized Fire Station No. 1 as requiring immediate repairs and renovations; and
WHEREAS, the Salinas Fire Department collaborated with RRM Design Group to develop construction documents based on the station's most urgent needs, including safety, accessibility, carcinogen management, and essential building system upgrades; and WHEREAS, the lowest responsible bid to include bid alternates, was received from Kent Construction in the amount of $3,532,249.93; and
WHEREAS, the Salinas Fire Department estimates to need an additional 20% in contingency, bringing the total contract award to $4,238,699.92; and WHEREAS, additional funding is required to cover ancillary costs in the amount of $860,000, bringing the total project cost to $5,098,699.92.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council does hereby:

1. Authorize the Mayor of Salinas to execute an agreement, on behalf of the City, with Kent Construction for the renovation of Fire Station No. 1, in an amount not to exceed the base bid and bid alternate sum plus a 20% contingency in the amount of $4,238,699.92;

2. Authorize the City Manager to approve necessary ancillary costs and agreements up to $860,000 to facilitate project completion, bringing the total project cost to not exceed $5,098,699.92;

3. Approving the reallocation of funds in an amount not to exceed $949,263.28 from CIP 9984, and in an amount not to exceed $1,894,482.87 from CIP 9626 to CIP 9235.

4. Authorize the City Manager to apply alternate sources of funding to this project, in an amount not exceeding the project total.

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PASSED AND APPROVED this 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
City of Salinas
Salinas Fire Station No. 1 Renovation Project No. 9235/9541, bidding on 09/24/2024 2:00 PM (PDT)

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PlanetBids
City of Salinas
Salinas Fire Station No. 1 Renovation Project No. 9235/9541, bidding on 09/24/2024 2:00 PM (PDT)

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Printed 09/24/2024
PlanetBids
City of Salinas
Salinas Fire Station No. 1 Renovation Project No. 9235/9541, bidding on 09/24/2024 2:00 PM (PDT)

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Printed 09/24/2024
PlanetBids

X
X
X
X
X
X
X
X
X
X
X
2000002233 1029837/CA
CA Acoustics Marina 1000007264 991823/CA X
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx L.K.

Emerzian
Woodworking Fresno 1000005826 731427/CA X
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx L.K. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx L.K.

Platinum Insulation Lathrop 1000016526 984046/CA X
Doors, Frames,
Hardware Door Guys Co Gilroy 1000045413 996027/CA X
Associated Plumbing Gilroy 1000014984 577085/CA X
MTD Drywall
Stainless Steel
Morgan Hill 1000991320 790702/CA
Perfection Stainless Bakersfield 1000001242 462114/CA X Soft MESS Monterey 1000035079 988797/CA X
Fuel Tank & Generator
Demo
Randazzo Ent Castroville 1000000845 471936/CA X
Val's Plumbing&
Heating Salinas 1000002438 236164/CA X
xxxxxxxxxxx L.K.

X
Low Voltage
JM Electrical Salinas 1000000800 376938/CA X
Darrell Varni Electric Watsonville 1000001220 735622/CA X /HVAC
A & B Fire Protection Salinas 1000015348 643385/CA X
JM Electrical Salinas 1000000800 376938/CA X
Painting Primal Paint San Jose 1000959277 1080977/CA
X
Fire Alarm JM Electrical Salinas 1000000800 376938/CA
X

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-584, Version: 1
Emergency Sherwood Hall HVAC Control System Replacement Approve a Resolution authorizing the City Manager to execute a contract with Environmental Systems, Inc. (ESI) for Emergency Sherwood Hall HVAC Control System Replacement in the amount of $196,312 to include a 20% ($39,262) contingency for a total amount not to exceed $235,574.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: LIBRARY AND COMMUNITY SERVICES & PUBLIC WORKS FROM: KRISTAN LUNDQUIST, LIBRARY AND COMMUNITY

COMMUNITY SERVICES DIRECTOR

DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: ANA AMBRIZ, RECREATION-PARKS SUPERINTENDENT

SEAN SCHMIDT, FACILITIES MAINTENANCE MANAGER
TITLE: EMERGENCY SHERWOOD HALL HVAC CONTROL SYSTEM

REPLACEMENT
RECOMMENDED MOTION:

A motion to approve a resolution authorizing the City Manager to execute a contract with Environmental Systems, Inc. (ESI) for Emergency Sherwood Hall HVAC Control System Replacement in the amount of $196,312 to include a 20% ($39,262) contingency for a total amount not to exceed $235,574.

EXECUTIVE SUMMARY:

On May 7, 2024, resolution 22960 was approved for the Emergency Sherwood Hall HVAC Control System Replacement contract. The City of Salinas awarded the contract to Environmental Systems, Inc. for $196,312 to include a 20% ($39,262) contingency for a total amount not to exceed $235,574. Due to delay in parts being received, the original agreement expired on August 30, 2024, leaving the scope of work incomplete. Some parts for the controls have been received.

We are still waiting on more parts. We are requesting approval of a new contract with ESI. Contract terms will be from August 31, 2024, to June 30, 2025. Scope of work and contract amounts will remain the same.

BACKGROUND:

The Public Works Facilities Division has been working with Library and Community Services Recreation-Park Division and the on-call service contractor, Environmental Systems Inc. (ESI) on issues pertaining to Sherwood Hall’s HVAC System for a couple of years. Earlier this year, an organization who rented the facility reached out Recreation-Park staff to inform them of the facility being hot and uncomfortable. Recreation-Park staff immediately reached out to Facilities and came on site to troubleshoot the HVAC system.

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On March 13, 2024, Facilities informed Recreation- Park staff that the building’s HVAC control air system had failed. The system was assessed as part of its quarterly maintenance, and it was determined that there were large air leaks causing the buildings air compressor to operate continually and ultimately fail. The failed control system causes the building to drastically overheat and unable to provide code required air requirements for an occupied public space. The assessment recommended to replace the nomadic HVACV control system to digital. The replacement will not only allow Facilities to detect proper function, but it will improve efficiencies by allowing them to address any issues remotely.

Labor and materials are estimated at $196,312. A twenty percent (20%) contingency is requested as part of this work to address any unforeseen deficiencies in the system that may be discovered while performing the work.

Staff is seeking Council approval of this replacement of the HVAC Control System pursuant to Section 12-27 of the Salinas Municipal Code, staff is requesting exceptions to competitive bidding for this agreement given that ESI is the City’s on-call service contractor for the HVAC systems and is familiar with the system and that competitive bidding of this item would further extend the timeline for replacement of the system.

Contract was awarded to ESI on May 7, 2024 for $196,312 to include a 20% ($39,262) contingency for a total amount not to exceed $235,574. Due to unforeseen circumstances, the scope of work for the project was not completed. Staff is requesting a new contract for the project because the term of the contract expired on August 30, 2024. New contract terms will be from August 31, 2024 to June 30, 2025.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

NO
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STRATEGIC PLAN INITIATIVE:

This project addresses the current City Council’s Goals of Infrastructure and Environmental Sustainability by improving city facilities.

DEPARTMENTAL COORDINATION:

The Facilities Division along with the City Manager’s Office have worked together to identify funding for the replacement of the HVAC Control System. The Public Works Facilities Division has been working with Library and Community Services Recreation Park Division to address system failures and bring the item before Council for approval. The Facilities Divisions will ensure timely replacement and proper protocols are followed.

FISCAL AND SUSTAINABILITY IMPACT:

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
3911 50.8170 City Hall
Adaptations &
Facilities HVAC
pending
transfer
$235,574 n/a 11/16/21,22250
12/05/23,22860
04/23/24,22950
ATTACHMENTS:

Resolution
Quote
Agreement for Services 1
Agreement for Services 2
1 RESOLUTION NO. (N.C.S.)

EMERGENCY SHERWOOD HALL HVAC CONTROL SYSTEM REPLACEMENT WHEREAS, Public Works Facilities Division has been working with Library and Community Services Rec-Park Division and the on-call service contractor, Environmental Systems Inc. (ESI) on issues pertaining to Sherwood Hall’s HVAC System; and WHEREAS, on March 13, 2024, the Facilities Division informed the Rec-Park Division that the HVAC Control System had failed; and
WHEREAS, replacement of the Control System is recommended; and WHEREAS, pursuant to Section 12-27 competitive bidding would further delay ordering and replacing the HVAC Control System and ESI is the city’s HVAC service contractor and is most intimately familiar with the system; and
WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

WHEREAS, that the Salinas City Council hereby approves emergency replacement of the Sherwood Hall HVAC Control System as part of the existing on-call service contract with ESI for $196,312; and
WHEREAS, that an additional 20% of new contract amount for contingencies in the amount of $39,262 is authorized for the Emergency Sherwood Hall HVAC Control System Replacement for a total contract cost not to exceed $235,574, with said amount being paid from American Rescue Plan Act funding (ARPA), and coming from the updated project, “Adaptations to City Hall/City Facility HVAC”; and
WHEREAS, that the City Manager is hereby authorized to execute all necessary documents related to the HVAC Control System Replacement.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council, pursuant to Salinas Municipal Code Section 12-21, authorizes the City Manager to enter into a contract for Emergency Sherwood Hall HVAC Control System Replacement with Environmental Systems, Inc. for a total contract cost not to exceed $235,574 for contract term from August 31, 2024 to June 30, 2025.

PASSED AND APPROVED this 22nd day of October 2024, by the following vote:

AYES:

NOES:
2 ABSENT:

ABSTAIN:

APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Agreement for Services v. January 2021 Page 1 of 10
Environmental Systems, Inc.

May 2024

AGREEMENT FOR SERVICES BETWEEN
THE CITY OF SALINAS AND ENVIRONMENTAL SYSTEMS INC.

Emergency Sherwood Hall HVAC Control System Replacement THIS AGREEMENT is executed this 7
th day of May 2024, (“Agreement” or
“Contract”) between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Environmental Systems Inc., a California Corporation (Hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Sherwood Hall HVAC Control System Replacement.

Contractor’s Proposal dated April 23, 2024, Attachment B.

3. Term. The work under this Agreement shall commence on May 7 th, 2024, and shall be
completed by August 30, 2024, unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay, and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, not to exceed one hundred ninety-six thousand three hundred twelve dollars ($196,312.00), as more fully described in title of Contractors fee schedule, Attachment B. Contractor has no right of reimbursement for expenses under this Agreement. Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City. The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

May 2024
from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

15. Laws. Contractor agrees that in the performance of this Agreement it will comply with all applicable State, Federal and local laws, and regulations, including those outlined in Attachment C. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.

CITY OF SALINAS
DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 3 of 10
Environmental Systems, Inc.

May 2024
__________________________________
Jim Pia
Assistant City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Gene Enfantino
Corp. Sec.

Agreement for Services v. January 2021 Page 4 of 10
Environmental Systems, Inc.

May 2024
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the Contractor shall cause the insurer to reduce or eliminate such self-insured retentions as respects to the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

May 2024
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 6 of 10
Environmental Systems, Inc.

May 2024
Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Payment bond

2. Performance bond

DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 7 of 10
Environmental Systems, Inc.

May 2024
Attachment B
DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page
8 of 10
Environmental Systems, Inc.

May 2024
DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 9 of 10
Environmental Systems, Inc.

May 2024
Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.

The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:

The prevailing rates are those issued as wage determinations by the DIR, for each craft, classification, and type of work. The current wage rate information can be found at the DIR’s website at: https://www.dir.ca.gov/oprl/DPreWageDetermination.htm.

Additionally, all contractors are required to request registered apprentices (DAS 142 form).

Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.

3. Certified Payroll Records: All contractors, including subcontractors, must maintain and file certified payroll records (“CPRs”) pursuant to Labor Code §1776. Additionally, all contractors and subcontractors must furnish certified payroll records into the DIR’s Electronic Certified Payroll Reporting (“eCPRs”) database DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 10 of 10
Environmental Systems, Inc.

May 2024
(https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.

4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.

7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):

Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.

8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.

10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.

12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.

DocuSign Envelope ID: 1C0748E4-70C0-42EB-9B78-E5685F371911 Agreement for Services v. January 2021 Page 1 of 10
Environmental Systems, Inc.

October 2024

AGREEMENT FOR SERVICES BETWEEN
THE CITY OF SALINAS AND ENVIRONMENTAL SYSTEMS INC.

Emergency Sherwood Hall HVAC Control System Replacement THIS AGREEMENT is executed this 22nd day of October 2024, (“Agreement” or “Contract”) between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Environmental Systems Inc., a California Corporation (Hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Emergency Sherwood Hall HVAC Control System Replacement. Contractor’s Proposal dated April 23, 2024, Attachment B.

3. Term. The work under this Agreement shall commence on August 31st, 2024, and shall be completed by June 30th, 2025, unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay, and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, not to exceed One Hundred Ninety-Six Thousand Three Hundred Twelve Dollars ($196,312) and to include a 20% ($39,262) contingency for a total amount not-to-exceed Two Hundred Thirty-Five Thousand Five Hundred Seventy-Four Dollars ($235,574), as more fully described in title of Contractors fee schedule, Attachment B. Contractor has no right of reimbursement for expenses under this Agreement.

Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City. The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

7. Indemnification. Contractor shall hold harmless, defend at its own expense, and Agreement for Services v. January 2021 Page 2 of 10
Environmental Systems, Inc.

October 2024
indemnify City and its officers, officials, employees, agents, and volunteers from and against all liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.

Agreement for Services v. January 2021 Page 3 of 10
Environmental Systems, Inc.

October 2024

CITY OF SALINAS
__________________________________
Rene Mendez
City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
Agreement for Services v. January 2021 Page 4 of 10
Environmental Systems, Inc.

October 2024
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

October 2024
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving Agreement for Services v. January 2021 Page 6 of 10
Environmental Systems, Inc.

October 2024
Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Payment bond

2. Performance bond

Agreement for Services v. January 2021 Page 7 of 10
Environmental Systems, Inc.

October 2024
Attachment B
Agreement for Services v. January 2021 Page
8 of 10
Environmental Systems, Inc.

October 2024
Agreement for Services v. January 2021 Page 9 of 10
Environmental Systems, Inc.

October 2024
Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.

The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:

Additionally, all contractors are required to request registered apprentices (DAS 142 form).

Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.

October 2024
(https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.

4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.

7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):

Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.

8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.

10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.

12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-591, Version: 1
Rejection of bids for the Salinas Municipal Airport Taxilane Rehabilitation Project - Phase 1, CIP 9354 Approve a Resolution rejecting all bids for the Salinas Municipal Airport Taxilane Rehabilitation Project - Phase 1, CIP 9354.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR
THRU: ADRIANA ROBLES, P.E., C.F.M., CITY ENGINEER
BY: VICTOR SANCHEZ, ASSISTANT ENGINEER
TITLE: REJECTION OF BIDS FOR THE SALINAS MUNICIPAL
AIRPORT TAXILANE REHABILITATION PROJECT – PHASE 1,
CIP 9354
RECOMMENDED MOTION:

It is recommended that City Council approve a resolution rejecting all bids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354.

EXECUTIVE SUMMARY:

On March 15, 2024, the City received three bids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354. The Federal Aviation Administration (FAA) announced that the Salinas Municipal Airport would receive $880,610 as part of the 2024 Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grants (AIG) round nine announcements. Funding for the project was to be entirely funded by the FAA as there are currently insufficient funds available in CIP 9354 to award the Taxilane Rehabilitation Project. Staff recommends rejecting all bids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354 due to insufficient funding and for exceeding the validity period of the bid proposals.

BACKGROUND:

The Taxilane Rehabilitation Project, Phase 1, CIP 9354 is an Airport Improvement Project (AIP) and a Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grant (AIG) funded taxilane rehabilitation project. The project scope of work includes but is not limited to full depth pavement reconstruction, 3-inch pavement asphalt inlay, installation of valley gutters, and installation of pavement markings for the taxilanes associated with hangars R, K, L, and O.

On December 13, 2022, City Council approved Resolution No. 22549, accepting grant funding from the Federal Aviation Administration (FAA) and Caltrans Division of Aeronautics for the design of the Salinas Municipal Airport Taxiway Bravo and Taxilane Rehabilitation when awarded and authorizing the City Manager to execute all required documentation upon prior approval as to form by the City Attorney for the grant offer.

Page | 2

The City contracted Kimley Horn from the City’s to develop the plans, specifications, and an engineer’s estimate for the Taxilane Rehabilitation Project and complete an application package to apply for the BIL AIG. The contract with Kimley Horn and the grant application was managed by the Airport Division while the Engineering Department reviewed and advertised the plans, specifications, and engineer’s estimate for the Taxilane Rehabilitation project. The Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1 bid package was approved by the City Engineer on February 23, 2024. The project was advertised for bidding on the same date with a bid opening date of March 15, 2024. The City received 3 bids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354. Bids were publicly opened via Zoom, with the following results (see attached Bid Tabulation Sheet for details):

Table 1: BID RESULTS
Contractor Total Base Bid 1 –
Base Bid 2
Coastal Paving & Excavating Inc $1,650,650.00
Radius Earthwork Inc $1,935,342.75
Granite Rock Company $1,970,248.50
Engineer’s Estimate $1,790,000.00
The engineer’s estimate for the project was $1,790,000and was prepared by Kimley Horn. Coastal Paving & Excavating, Inc., submitted a bid of $1,650,650, which is $139,350 lower, or 92% of, the engineer’s estimate.

On August 13, 2024 the FAA announced that the Salinas Municipal Airport would receive $880,610 as part of the 2024 Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grants (AIG) round nine announcements. Funding for the project was to be entirely funded by the FAA as there are currently insufficient funds available in CIP 9354 to award the Taxilane Rehabilitation Project.

The bid proposals for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1 are valid 180 calendar days after bid opening. Bid opening for the project was on March 15, 2024 making September 11, 2024 the last day bids for the project were valid. As of October 22, 2024, award of the project has exceeded the period where bid proposals are valid.

Based on provisions of the Project Specifications, “The basis of award shall be the lowest total bid, as noted in the Proposal. The City further reserves the right to award or reject the Base Bid or any item(s) within, depending on available funding.” The lowest bidder is Coastal Paving & Excavating Inc. with a total Base Bid of $1,650,650 The engineer’s estimate is $1,790,000 putting the proposal received at 92% of the engineers estimate.

The “Notice to Bidders” informed the bidders that the City reserves the right to reject any and all Proposals and waive any irregularities to any Proposals received.

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Staff recommends rejecting all bids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1 due to insufficient funding and exceeding the validity period of the bid proposals.

Staff will rebid the project when sufficient funds are available in CIP 9354.

It is staff’s plan to rescope and rebid the project to attempt to fit it in within the available funding received from the FAA.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

Section 15300.2 as all exceptions do not relate to the project scope of work for this project.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes. California Government Code §84308 applies to this item.

STRATEGIC PLAN INITIATIVE:

This project, when awarded, will addresses the current City Council’s Goals of “Infrastructure and Environmental Sustainability” by improving city facilities.

DEPARTMENTAL COORDINATION:

Coordination between Public Works and Airport Department for identification of scope of work and grant coordination.

FISCAL AND SUSTAINABILITY IMPACT:

This action does not have a direct fiscal impact.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
5800 50.9354-66.4000 Capital Outlays $0.00 N/A 374 N/A
ATTACHMENTS:

Resolution
Bid Tabulation
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION REJECTING ALL BIDS FOR THE SALINAS MUNICIPAL AIRPORT TAXILANE REHABILITATION PROJECT – PHASE 1, CIP 9354
WHEREAS, On December 13, 2022, City Council approved resolution 22549, accepting grant funding from the Federal Aviation Administration (FAA) and Caltrans Division of Aeronautics for the design of the Salinas Municipal Airport Taxiway Bravo and Taxilane Rehabilitation when awarded and authorizing the City Manager to execute all required documentation for the grant offer; and
WHEREAS, The City contracted Kimley Horn to develop the plans, specifications, and an engineer’s estimate for a taxilane rehabilitation project and create an application package to apply to the Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grants (AIG); and WHEREAS, The Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1 bid package was approved by the City Engineer on February 23, 2024 and was advertised for bidding on the same date with a bid opening date of March 15, 2024; and WHEREAS, City Staff on March 15, 2024, at a public meeting held via Zoom from City Hall, at Salinas, California, publicly opened, examined, and declared all bids delivered electronically via PlanetBids for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354 in accordance with the Project Specifications; and WHEREAS, the City received three bids for the Salinas Airport Taxilane Rehabilitation Project – Phase 1, from Coastal Paving & Excavating, Radius Earthwork Inc., and Granite Rock Company with a total Base Bid of $1,650,650.00, $1,935,342.75, and $1,970,248.50, respectively; and
WHEREAS, On August 13, 2024 the FAA announced that the Salinas Municipal Airport would receive $880,610.00 as part of the 2024 BIL AIG round nine announcements; and WHEREAS, the project specifications required bids to be valid for 180 calendar days. The project was bid on March 15, 2024 and bid proposals expired on September 11th, 2024; and WHEREAS, there are currently insufficient funds in CIP 9354 to award the Salinas Airport Taxilane Rehabilitation Project – Phase 1; and
WHEREAS, the Project Specifications grant the City the right to reject any and all proposals and waive any irregularities to any proposals received.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby rejects all bids received for the Salinas Municipal Airport Taxilane Rehabilitation Project – Phase 1, CIP 9354.

PASSED AND APPROVED this 22nd day of October 2024, by the following vote:
2 AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
BID OPENING:

March 15 2024
B I D T A B U L A T I O N PROJECT No. 9354
TAXILANE REHABILITATION PHASE 1, CIP 9354 Drawing No.

Bid awarded on _______ by City Council to ___________ Project Engineer: Victor Sanchez for the sum of __________ Project Manager: Victor Sanchez All other bids were rejected and bid bonds returned.

Dated
City Clerk ENGINEER'S

ESTIMATE
ITEM APPROX. UNIT UNIT UNIT UNIT
NO. QUANTITY PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL BASE BID NO. 1
1 CONTRACTOR QUALITY CONTROL PROGRAM (CQCP) (2% MAX OF BASE BID) 1 LS $ 12,900.00 12,900.00 $ $14,000.00 14,000.00 $ $14,000.00 14,000.00 $ $25,000.00 25,000.00 $ 2 SWPPP 1 LS $ 15,000.00 $ 15,000.00 $35,000.00 $ 35,000.00 $25,000.00 $ 25,000.00 $60,000.00 $ 60,000.00 3 MOBILIZATION/DEMOBILIZATION (5% MAX OF BASE BID) 1 LS $ 32,200.00 $ 32,200.00 $35,000.00 $ 35,000.00 $36,000.00 $ 36,000.00 $55,000.00 $ 55,000.00 4 SURVEY CONTROL VERIFICATION 1 LS $ 30,000.00 $ 30,000.00 $5,000.00 $ 5,000.00 $30,000.00 $ 30,000.00 $5,000.00 $ 5,000.00 5 CONSTRUCTION SURVEY AND STAKING 1 LS $ 5,000.00 $ 5,000.00 $12,850.00 $ 12,850.00 $25,000.00 $ 25,000.00 $17,000.00 $ 17,000.00 6 AIRFIELD CONSTRUCTION AREA CONTROL 1 LS $ 50,000.00 $ 50,000.00 $34,030.00 $ 34,030.00 $43,000.00 $ 43,000.00 $50,000.00 $ 50,000.00 7 SWEEPERS AND FOD CONTROL 5 CDAYS $ 1,000.00 $ 5,000.00 $5,000.00 $ 25,000.00 $5,500.00 $ 27,500.00 $1,680.00 $ 8,400.00 8 SAW CUT 685 LF $ 11.00 $ 7,535.00 $6.00 $ 4,110.00 $8.50 $ 5,822.50 $12.00 $ 8,220.00 9 PAVEMENT REMOVAL (FULL DEPTH) 5825 SY $ 7.50 $ 43,687.50 $7.00 $ 40,775.00 $4.50 $ 26,212.50 $6.00 $ 34,950.00 10 REMOVAL OF FOREGIN SUB-STANCES/CONTAMINATES 180 SF $ 2.00 $ 360.00 $40.00 $ 7,200.00 $45.00 $ 8,100.00 $60.00 $ 10,800.00 11 CONCRETE SPALL REPAIR 0 SF $ - $ - $0.00 $ - $0.00 $ - $0.00 $ - 12 UNCLASSIFIED EXCAVATION 790 CY $ 35.00 $ 27,650.00 $60.00 $ 47,400.00 $36.00 $ 28,440.00 $63.00 $ 49,770.00 13 UNSUITABLE EXCAVATION 151 SY $ 200.00 $ 30,241.64 $100.00 $ 15,100.00 $27.00 $ 4,077.00 $140.00 $ 21,140.00 14 CEMENT/ LIME TREATED SUBGRADE 4890 SY $ 30.00 $ 146,700.00 $20.00 $ 97,800.00 $9.75 $ 47,677.50 $21.00 $ 102,690.00 15 AGGREGATE BASE COURSE 815 CY $ 100.00 $ 81,500.00 $140.00 $ 114,100.00 $81.00 $ 66,015.00 $184.00 $ 149,960.00 16 ASPHALT SURFACE COURSE 995 TON $ 180.00 $ 179,100.00 $190.00 $ 189,050.00 $265.00 $ 263,675.00 $261.00 $ 259,695.00 17 EMULSIFIED ASPHALT PRIME COAT 195 GAL $ 4.00 $ 780.00 $12.00 $ 2,340.00 $21.50 $ 4,192.50 $7.00 $ 1,365.00 18 STRUCTURAL PORTLAND CEMENT CONCRETE PAVEMENT 25 CY $ 350.00 $ 8,750.00 $725.00 $ 18,125.00 $905.00 $ 22,625.00 $3,750.00 $ 93,750.00 19 PAVEMENT MARKING 2845 SF $ 4.00 $ 11,380.00 $4.00 $ 11,380.00 $14.00 $ 39,830.00 $4.00 $ 11,380.00 20 TEMPORARY PAVEMENT MARKING 195 SF $ 2.00 $ 390.00 $10.00 $ 1,950.00 $10.75 $ 2,096.25 $10.00 $ 1,950.00 21 HYDROSEEDING 60 SY $ 1.50 $ 90.00 $30.00 $ 1,800.00 $32.50 $ 1,950.00 $18.70 $ 1,122.00 TOTAL BASE BID NO. 1 (ITEMS 1-21) $ 712,010.00 688,264.14 $ 721,213.25 $ 967,192.00 $ (FOR COMPARISON ONLY)
Additive Alternative No.1
22 CONTRACTOR QUALITY CONTROL PROGRAM (CQCP) (2% MAX OF BASE BID) 1 LS $ 9,400.00 9,400.00 $ $8,000.00 8,000.000 $ $11,000.00 11,000.00 $ $5,000.00 5,000.00 $ 23 MOBILIZATION / DEMOBILIZATION (5% MAX OF BASE BID) 1 LS $ 19,000.00 $ 19,000.00 $19,000.00 $ 19,000.000 $27,500.00 $ 27,500.00 $18,000.00 $ 18,000.00 24 SURVEY CONTROL VERIFICATION 1 LS $ 15,000.00 $ 15,000.00 $1,500.00 $ 1,500.000 $15,000.00 $ 15,000.00 $2,500.00 $ 2,500.00 25 CONSTRUCTION SURVEY AND STAKING 1 LS $ 5,000.00 $ 5,000.00 $2,000.00 $ 2,000.000 $27,000.00 $ 27,000.00 $15,000.00 $ 15,000.00 26 AIRFIELD CONSTRUCTION AREA CONTROL 1 LS $ 10,000.00 $ 10,000.00 $3,000.00 $ 3,000.000 $42,000.00 $ 42,000.00 $12,000.00 $ 12,000.00 27 SWEEPERS AND FOD CONTROL 5 CDAYS $ 5,000.00 1,000.00 $ $4,000.00 20,000.000 $ $5,700.00 28,500.00 $ $1,680.00 8,400.00 $ 28 SAW CUT 235 LF $ 11.00 $ 2,585.00 $6.00 $ 1,410.000 $10.00 $ 2,350.00 $15.00 $ 3,525.00 29 PAVEMENT REMOVAL (FULL DEPTH) 3820 SY $ 7.50 $ 28,650.00 $7.00 $ 26,740.000 $10.50 $ 40,110.00 $6.25 $ 23,875.00 30 0 $ - $ - $0.00 $ - $0.00 $ - $0.00 $ -
31 UNCLASSIFIED EXCAVATION 820 CY $ 35.00 $ 28,700.00 $60.00 $ 49,200.000 $36.00 $ 29,520.00 $47.00 $ 38,540.00 32 UNSUITABLE EXCAVATION 48 SY $ 200.00 $ 9,600.00 $100.00 $ 4,800.000 $27.00 $ 1,296.00 $74.00 $ 3,552.00 33 CEMENT/LIME TREATED SUBGRADE 3385 SY $ 30.00 $ 101,550.00 $20.00 $ 67,700.000 $11.00 $ 37,235.00 $19.00 $ 64,315.00 34 AGGREGATE BASE COURSE 565 CY $ 100.00 $ 56,500.00 $140.00 $ 79,100.000 $86.00 $ 48,590.00 $145.00 $ 81,925.00 35 ASPHALT SURFACE COURSE 640 TON $ 180.00 $ 115,200.00 $190.00 $ 121,600.000 $277.00 $ 177,280.00 $206.00 $ 131,840.00 36 EMULSIFIED ASPHALT PRIME COAT 120 GAL $ 4.00 $ 480.00 $12.00 $ 1,440.000 $22.00 $ 2,640.00 $10.00 $ 1,200.00 37 PAVEMENT MARKING 1045 SF $ 4.00 $ 4,180.00 $3.00 $ 3,135.000 $14.00 $ 14,630.00 $3.00 $ 3,135.00 38 CONCRETE VALLEY GUTTER 425 LF $ 200.00 $ 85,000.00 $57.00 $ 24,225.000 $125.00 $ 53,125.00 $108.00 $ 45,900.00 TOTAL ADDITIVE ALTERNATIVE NO.1 (ITEMS 22-38) $ 432,850.000 495,845.00 $ 557,776.00 $ 458,707.00 $ (FOR COMPARISON ONLY)
Additive Alternative No.2
39 CONTRACTOR QUALITY CONTROL PROGRAM (CQCP) (2% MAX OF BASE BID) 1 LS $ 11,400.00 $ 11,400.00 $10,000.00 $ 10,000.000 $13,000.00 $ 13,000.00 $6,000.00 $ 6,000.00 40 MOBILIZATION/ DEMOBILIZATION (5% MAX OF BASE BID) 1 LS $ 28,300.00 $ 28,300.00 $23,000.00 $ 23,000.000 $32,500.00 $ 32,500.00 $18,000.00 $ 18,000.00 41 SURVEY CONTROL VERIFICATION 1 LS $ 15,000.00 $ 15,000.00 $1,500.00 $ 1,500.000 $10,700.00 $ 10,700.00 $2,500.00 $ 2,500.00 42 CONSTRUCTION SURVEY AND STAKING 1 LS $ 5,000.00 $ 5,000.00 $2,500.00 $ 2,500.000 $22,000.00 $ 22,000.00 $15,000.00 $ 15,000.00 43 AIRFIELD CONSTRUCTION AREA CONTROL 1 LS $ 10,000.00 $ 10,000.00 $5,000.00 $ 5,000.000 $40,000.00 $ 40,000.00 $17,500.00 $ 17,500.00 44 SWEEPERS AND FOD CONTROL 5 CDAYS $ 1,000.00 $ 5,000.00 $4,000.00 $ 20,000.000 $5,500.00 $ 27,500.00 $1,680.00 $ 8,400.00 45 SAW CUT 275 LF $ 11.00 $ 3,025.00 $6.00 $ 1,650.000 $10.00 $ 2,750.00 $13.75 $ 3,781.25 46 PAVEMENT REMOVAL (FULL DEPTH) 4395 SY $ 7.50 $ 32,962.50 $7.00 $ 30,765.000 $10.00 $ 43,950.00 $5.35 $ 23,513.25 47 CONCRETE SPALL REPAIR 0 SF $ - $ - $0.00 $ - $0.00 $ - $0.00 $ - 48 COLD MILLING (3") 1160 SY $ 10.00 $ 11,600.00 $10.00 $ 11,600.000 $23.50 $ 27,260.00 $6.00 $ 6,960.00 49 UNCLASSIFIED EXCAVATION 565 CY $ 19,775.00 35.00 $ $60.00 33,900.000 $ $36.00 20,340.00 $ $58.00 32,770.00 $ 50 UNSUITABLE EXCAVATION 402 SY $ 200.00 $ 80,400.00 $100.00 $ 40,200.000 $28.00 $ 11,256.00 $60.00 $ 24,120.00 51 CEMENT/ LIME TREATED SUBGRADE 2555 SY $ 30.00 $ 76,650.00 $20.00 $ 51,100.000 $14.00 $ 35,770.00 $28.00 $ 71,540.00 52 AGGREGATE BASE COURSE 430 CY $ 100.00 $ 43,000.00 $140.00 $ 60,200.000 $92.75 $ 39,882.50 $165.00 $ 70,950.00 53 ASPHALT SURFACE COURSE 940 TON $ 180.00 $ 169,200.00 $190.00 $ 178,600.000 $258.00 $ 242,520.00 $201.00 $ 188,940.00 54 EMULSIFIED ASPHALT PRIME COAT 425 GAL $ 4.00 $ 1,700.00 $12.00 $ 5,100.000 $22.50 $ 9,562.50 $6.00 $ 2,550.00 55 EMULSIFIED ASPHALT TACK COAT 175 GAL $ 1,225.00 7.00 $ $12.00 2,100.000 $ $22.50 3,937.50 $ $9.00 1,575.00 $ 56 PAVEMENT MARKING 1450 SF $ 4.00 $ 5,800.00 $3.00 $ 4,350.000 $14.00 $ 20,300.00 $3.00 $ 4,350.00 57 CONCRETE VALLEY GUTTER 425 LF $ 200.00 $ 85,000.00 $57.00 $ 24,225.000 $125.00 $ 53,125.00 $108.00 $ 45,900.00 TOTAL ADDITIVE ALTERNATIVE NO.2 (ITEMS 39-57) $ 605,037.50 $ 656,353.50 505,790.000 $ 544,349.50 $ (FOR COMPARISON ONLY)
GRAND TOTAL (BASE BID + ADDITIVE ALTERNATIVES ITEMS 1-57) $ 1,789,146.64 $ 1,650,650.00 $ 1,935,342.75 $ 1,970,248.50

DESCRIPTION UNIT
Coastal Paving & Excavating INC.
24560 Silver Cloud Ct. Suite 101 Monterey CA, 93940
Granite Rock Company
5225 Hellyer Avenue, Suite 220 San Jose CA, 95138
Radius Earthwork INC
197 E Hamilton Avenue Campbell CA, 95008
8/22/2024 2:48 PM J:\p\9354 Salinas Municipal Airport Improvements\Bid Operations\Exhibit-A_BidTab- Taxilane Rehabilitation Project.xlsx Page 1 of 1 City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-594, Version: 1
First Amendment with Griffin Structures for Labor Compliance Services Approve a Resolution authorizing the City Manager to execute First Amendment with Griffin Structures for labor compliance services during the Hebbron Family Center Revitalization Project construction in an amount not to exceed $40,374.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT

LIBRARY AND COMMUNITY SERVICES
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR

KRISTAN LUNDQUIST, LCS DIRECTOR
TITLE: FIRST AMENDMENT WITH GRIFFIN STRUCTURES FOR

LABOR COMPLIANCE SERVICES
RECOMMENDED MOTION:

A motion to approve a Resolution authorizing the City Manager to execute First Amendment with Griffin Structures for labor compliance services during the Hebbron Family Center Revitalization Project construction in an amount not to exceed $40,374.

EXECUTIVE SUMMARY:

On December 8, 2021 the City issued a Request for Qualifications (RFQ) for Project and Construction Management and Community Engagement assistance for the Hebbron Family Center Revitalization Project. Griffin Structures was selected as the most qualified for the Hebbron Project. On May 24, 2022, through Resolution 22361, the City Council approved a professional services agreement with Griffin Structures which includes a scope of work, budget and schedule for:

1. Project management

2. Demolition plans and specifications

3. Community outreach

4. Design development

5. Management of the selection of a Design Build Entity

6. Construction oversight
The final scope, budget and schedule did not include labor compliance. Currently the City does not have the resources to cover labor compliance for this project. Griffin has submitted a proposal to cover the labor compliance for the Hebbron Family Center Project in the amount of $40,374.

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BACKGROUND:

In July of 2019, the Salinas City Council adopted the Parks, Recreation and Libraries Master Plan (Master Plan). The Master Plan represents a community engagement effort that connected with thousands of residents and community leaders over two years. The plan assessed the current state of our park, recreation, and library facilities and engaged residents to prioritize the need for maintenance. The Hebbron Family Center was not only identified in the Master Plan to have “no architectural value” but also ranked the highest in maintenance priorities due to its structural condition. In addition, the Alisal Vibrancy Plan (AVP) also adopted by the City Council in 2019, is an action-oriented, comprehensive strategy for the City of Salinas’ (City’s) East Salinas (Alisal) neighborhood. Created with equity at its core, the AVP is a community-driven plan to alleviate and reverse decades of neglect and underinvestment in the mostly Hispanic/Latino Alisal neighborhood and to improve the quality of life for residents by building upon the social and cultural wealth of the Alisal. Rebuilding the Hebbron Family Center was identified by the community as a top priority in the AVP as a vital community resource that was in serious disrepair.

The Hebbron Family Center (Center) served residents since the 1960s, the Center was once a community church and then repurposed as a community center in the 1970s. The Center has provided many critical programs and services for the community, including after-school recreation and homework assistance programs, a teen lounge, martial arts training, food bank distribution, citizenship classes, a pre-kinder program, and much more. Unfortunately, the Hebbron Community Center closed in 2020, during pandemic, due to critical safety issues such as roof leaks, potential mold, and significant foundation problems.

Following the recommendations of the Master Plan, staff has worked diligently to secure funding sources to rebuild the Hebbron Family Center. In 2019 and 2020, LCS submitted a Prop 68 application to the Office of Grants and Local Services (OGALS) but was unsuccessful in securing funds for the renovation of the Hebbron Family Center. In addition to seeking grant funding, the City submitted a direct request for funds from the State of California through Assemblymember Rivas’ office. The City was notified in September 2021 that the Hebbron Family Center Revitalization Project would receive $8.1 Million from the State.

In April 2022, the LCS and PW Departments made an inquiry to the Community Development Department (CDD) about the availability of HUD Community Development Block Grant (CDBG) Entitlement Funds to support the project’s pre-development costs. CDD staff reviewed the request in consultation with HUD staff and deemed the project as an eligible activity to receive CDBG Entitlement Funds as the project satisfies the National Objective of benefiting a low- and moderate- (L/M) income area where 51% of the residents fall within the low- and moderate-income categories. Therefore, CDBG funds to support the Hebbron Family Center have been allocated.

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On May 24, 2022 with resolution 22361 the City Council approved a professional services agreement with Griffin Structures which includes a scope of work, budget and schedule for:

1. Project management

2. Demolition plans and specifications

3. Community outreach

4. Design development

5. Management of the selection of a Design Build Entity

6. Construction oversight
The final scope, budget and schedule did not include labor compliance. Currently the City does not have the resources to cover labor compliance for this project. Griffin Structures has submitted a proposal to cover the labor compliance services during the construction of the Hebbron Family Center Project in the amount of $40,374.

On April 4, 2023, a contract for the demolition of the old Hebbron Family Center was awarded to Randazzo Enterprises, Inc.

On August 8, 2023, the demolition project was accepted by City Council.

On March, 5 2024, a design build contract was awarded to Diede Construction.

CEQA CONSIDERATION:

Categorical Exemption. The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guideline (Section 15300, Class 2) because it involves replacement and reconstruction of an existing structure.

No Significant Impact. The City of Salinas has determined that the project is of no significant impact under 24 CFR 58.32 – National Environmental Policy Act. No factors were found to be significant on a stand-alone basis.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

Yes
STRATEGIC PLAN INITIATIVE:

This action supports the Council’s initiative of “Youth and Seniors” and “Economic Development” and implements a top priority of the PRLMP and AVP.

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DEPARTMENTAL COORDINATION:

The Public Works Department worked with Library & Community Services Department and Community Development Departments to develop the RFQ, rate and rank the SOQs, interview the top firms and negotiate a final scope of work and budget proposal.

FISCAL AND SUSTAINABILITY IMPACT:

Fund Appropriation /
CIP
Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
5800 55.9165 Hebbron Family
Center Impr
$70,601.27 $40,374 N/A N/A
ATTACHMENTS:

Resolution
Amendment #1
Griffin Structures Fee Proposal
1 RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SALINAS AND GRIFFIN STRUCTURES
WHEREAS, the Parks, Recreation and Libraries Master Plan identified Hebbron Family Center to have “no architectural value” and was the highest ranked priority due to its structural condition; and
WHEREAS, the Hebbron Family Center Revitalization Project has received $8.1 million from the State of California; and
WHEREAS, the City issued a Request for Qualifications for Project and Construction Management and Community Engagement assistance; and
WHEREAS, through Resolution No. 22361 the City Council approved a professional services agreement with Griffin Structures; and
WHEREAS, the approved professional service agreement did not include labor compliance as part of the original scope of services; however, labor compliance is an important component of the project which City staff recommend be managed by Griffin Structures; and WHEREAS, Griffin Structures has submitted a fee proposal for labor compliance in the amount to $40,374.

NOW THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF SALINAS approves Amendment No. 1 to the Professional Services Agreement between the City of Salinas and Griffin Structures and authorizes the City Manager to execute the First Amendment.

PASSED AND APPROVED this 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
2 ________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk

Page 1 of 1 ends

Version: July 2024
AGREEMENT —AMENDMENT NO. 1 TO

PROGRAM AND CONSTRUCTION MANAGEMENT SERVICES FOR THE

HEBBRON FAMILY CENTER REVITALIZATION PROJECT

BETWEEN
GRIFFIN STRUCTURES, INC., AND CITY OF SALINAS
This Amendment No. 1 to the Agreement for Professional Services (the “Amendment”) is entered into this ___ day of ________ 2024, by and between the City of Salinas (the “City”) and Griffin Structures, Inc., (the “Consultant”). City and Consultant may be individually referred to herein as a “Party” and collectively the City and Consultant may be referred to as the “Parties.”

RECITALS
WHEREAS, the City and Consultant first entered into an agreement for Program And Construction Management Services for the Hebbron Family Center Revitalization Project effective May 24, 2022, pursuant to which Consultant agreed to act as and provide certain services to the City for compensation (the “Agreement”); and WHEREAS, the City and Consultant desire to amend the Agreement to reflect additional scope of services and additional compensation.

NOW, THEREFORE, in mutual consideration of the terms and conditions set forth below, the Parties agree as follows:

TERMS

1. The Scope and Services set forth in the Agreement is amended to include labor compliance as outlined in Attachment ASR 01, attached hereto and incorporated herein by this reference.

2. The total amount of compensation to be paid under the Agreement is hereby amended to include $40,374 for labor compliance for a total amount not to exceed $1,334,084.

3. The term of the of the Agreement is herby extended to January 31, 2026.

4. All other covenants, terms, and conditions set forth in the Agreement and not amended by this Amendment shall remain in full force and effect as if fully set forth herein.

IN WITNESS WHEREOF, the undersigned, as authorized representatives of the City and Contractor have entered into this Agreement as of the date first written above.

CITY OF SALINAS Griffin Structures, Inc.
___________________________________
René Mendez, City Manager
Printed Name
Title
APPROVED AS TO FORM:
___________________________________
□ Christopher A. Callihan, City Attorney
□ Rhonda Combs, Assistant City Attorney
ASR 01

GRIFFIN STRUCTURES FEE PROPOSAL

HEBBRON FAMILY CENTER REVITALIZATION PROJECT

CITY OF SALINAS
09/16/2024
Griffin Structures’ Fee Proposal is based on all reasonable costs necessary to perform Program and Construction Management services for the Hebbron Family Center Revitalization Project. For these requisite services, Griffin Structures proposes the following Not to Exceed Fee:

Phase 1 Labor Compliance (Solis Group): $ 4,020
Phase 2 Labor Compliance (Solis Group): $ 31,088
Contract Administration and Mark Up (15%): $ 5,266
Total $ 40,374
All proposed hourly rates are fully burdened and include overhead, profit, taxes, and benefits. The hours identified for each individual employee and task are estimates only and are not to be construed as not to exceed hours for any individual task, phase, or time-period. We reserve the right to reallocate hours between staff members and tasks to accomplish the overall objectives and requirements of the project.

Services are based on the attached Fee Schedule, Resource Allocation Schedule, which provides detail on the allocation of hours. Any extension of the schedule or services may result in additional fee, in good faith negotiation with the City.

ADDITIONAL SCOPE OF SERVICES
Per the City’s request, this Add Service Request consists of scope related to Labor Compliance and Certified Payroll monitoring. For this service we have requested the attached proposal for the Solis Group which articulates the scope services, the number of months it includes, and a price per month.

Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
February 19, 2024
David Jacobs, PE, LS
Director of Public Works
City of Salinas, Public Works Department
200 Lincoln Avenue
Salinas, CA 93901
Re: Revised Proposal to Provide Labor Compliance Services for the City of Salinas Hebbron Family Center Phase II Project
Dear David Jacobs:

The Solís Group (TSG) is pleased to submit this cost proposal to provide labor compliance and Section 3 services required for the above referenced project. The work scope for this assignment is attached. Our fixed-fee cost proposal is summarized below and is based on project information you provided; significant change to this information may affect our fee.

Project Description Construction
Value
Duration in Months
(including closeout)
Monthly
Fee
Life of Project
Estimate
City of Salinas
Hebbron Family Center
Phase 1: Demolition
$ 7,000,000 2 $ 2,010 $ 4,020
Project Description Construction
Value
Duration in Months
(including closeout)
Monthly
Fee
Life of Project
Estimate
City of Salinas
Hebbron Family Center
Phase II
$ 11,000,000 16 $ 1,943 $ 31,088
TOTAL COST $35,108
Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
Scope of Work
TSG will ensure compliance with Federal Davis-Bacon and State Prevailing Wage requirements.

We will enforce the highest wage between Davis-Bacon Prevailing Wages and California State Prevailing Wages, as determined by the California Department of Industrial Relations and Division of Labor Statistics and Research. Our scope of work will include the following tasks.

Advise Contractors of All Labor Compliance Requirements We will conduct the following activities related to pre-construction activities:
• Inform the contractor(s), via pre-bid and/or pre-construction meetings of the California Labor Code and Federal Davis-Bacon requirements, including:
o Payment of prevailing wages
o Fringe Benefit Statement submittal
o Use of apprenticeships
o Required submittals (Certified Payroll Records and related documents, Apprenticeship program participation forms (DAS-140 and CAC-2) o Non-Discrimination in Employment Practices
o Placement of required posters
o Anti-kickback provisions
o Subcontractor listing requirements
o Licensing requirements
o Unfair Competition Requirements
o Worker’s Compensation Insurance requirements
o Penalties
• Provide the contractor(s) with the applicable prevailing wage determination(s) for the project
• Provide the contractor(s) with appropriate blank forms, document submittal schedule and checklist for submitting applicable documents
• Provide technical assistance to the contractor(s) and awarding body, including contact telephone number for contractors to call for assistance and dedicated email address where contractors and staff can send or request information Compliance Monitoring
We will conduct the following activities related to monitoring and enforcement of prevailing wages and apprenticeship requirements:
• We receive, securely store, review and audit Certified Payroll Records (CPR’s), Fringe Benefit Statements, Trustee Reports, DAS-140 and CAC-2, and related documents • Verify payments by conducting regular and timely spot audits and, when necessary complete audits, of compliance documents and cross check the information with related documents
• Request supporting documents including: Inspector Logs, Job Logs, timesheets, signin sheets (when available), and contact Trust Funds (if applicable), when required Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
• Conduct interviews of workers in such frequency as may be necessary to assure compliance. This information will be crosschecked against the CPR’s and related documents.
• Verify that all apprentices have been properly registered (or certified) in an apprenticeship program registered with the Bureau of Apprenticeship and Training, or with a State Apprenticeship Program recognized by the Bureau. • Verify that all apprenticeships in possession of a formal certification are registered in an approved program. Verification shall be made with the United States Department of Labor, Employment and Training Administration.

Compliance Enforcement
The following enforcement activities will be conducted:
• Monthly notification of missing or delinquent documents and corrective actions through the use of a Delinquent Documents Form to both the contractor and awarding body
• Notification of wages and penalties due through the use of a Prevailing Wages Audit Worksheet
o When documents are not received, we will inform the awarding body of recommended penalty-related contract amounts to be withheld for contractor(s) failure to submit timely documents
• Provide copies of all related correspondence and notifications to the awarding body • Notification to the contractor(s) of Right to Obtain a Review of Assessment and/or conduct Settlement Meeting
• Collect and distribute wage restitutions to affected employees • Notify awarding body of underpayment amounts and recommended assessment of liquidated damages and penalties to be withheld
• Provide a final summary at end of project of items due It is our practice to communicate with contractors and owners regarding apparent or potential violations of the California Labor Code, to ensure that contractors are aware of the requirements and have an opportunity to promptly and voluntarily resolve any issues. If issues are not promptly and voluntarily resolved and a determination of a Labor Code violation is reached, penalty assessment is recommended in accordance with Labor Code requirements.

Coordination activities with public and private agencies, and the awarding body Potential project participants (auditors, interested parties) with whom we will coordinate include the following:
• U.S. Department of Labor
• California Department of Industrial Relations
• California Division of Labor Standards Enforcement
• Division of Apprenticeship Standards
Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
• Joint Labor-Management Committees established pursuant to the federal Labor Management Cooperation Act of 1978, such as the Center for Contract Compliance Coordination activities include:
• Provide copies of compliance and enforce action notices and correspondence to the awarding body
• Respond to inquiries and request for copies of documents such as Certified Payroll Records. Copies of such records will be redacted according to the California Labor Code before release
• Coordinate investigations and enforcement actions (e.g., California Labor Commissioner)
• Coordinate enforcement actions and Settlement Meetings with the awarding body’s legal Counsel
Provide Required Reports
We will provide the following reports:
• A Monthly Activity Report that will include the following:
o An Executive Summary for the reporting period
o Identification of enforcement activities taken and results o Restitution wages, penalties and liquidated damages assessed and collected o A matrix identifying current issues and their status
o List of projects monitored
• Project Closeout Report, composed of the elements included in the Monthly Report, and including items that may be due but do not affect the completion of the project The following databases will be maintained and provided with the reports • A database of employees interviewed and findings, wage restitutions, and liquidated damages assessed and collected
We will provide support, as necessary, to assist in fulfilling state and federal reporting requirements.

Section 3 Monitoring Services

1. Documentation Related to Searching for Section 3 Employees TSG will collect documentation from contractor(s) demonstrating progress towards fulfilling Section 3 contractual requirements. The following reports shall be obtained by TSG:
• Documentation of intent and efforts to comply with Section 3 requirements and goals. • Workforce Projections for the contractor and all subcontractors • Construction Schedule
• A list of the contractor’s current employees and lists of current employees of all subcontractors • Proof of public notices announcing Section 3 resident employment and Section 3 business contracting opportunities at the project jobsite Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com

2. Section 3 Employment Documentation
TSG will collect Monthly Section 3 hire reports that cumulatively report each Section 3 employee’s name, employer, date hired, address, family size, annual income, Section 3 status and hours worked on the project to date.

3. Section 3 Business Contact/Hiring Compliance
TSG will collect documentation demonstrating the contractor(s) progress toward fulfilling the Section 3 policy monthly. Failure to provide documentation to the consultant could result in the recommendation to retain 10% of a progress payment until all required documentation is received.
• TSG will collect and document contractor(s) efforts to identify contract opportunities to facilitate participation by Section 3 businesses.
• TSG will collect and document contractor(s) efforts to contact business outreach agencies to assist in recruiting Section 3 business enterprises. • TSG will collect and document contractor(s) efforts to post public notices announcing Section 3 business contracting opportunities at the project jobsite. • TSG will collect and document contractor(s) efforts to advertise for subcontracting opportunities in local newspaper outlets. • TSG will collect and document contractor(s) efforts to solicit written bids from Section 3 businesses desiring to participate in this project. • TSG will collect and document contractor(s) efforts to follow up with initial solicitations of interested Section 3 businesses. A copy of telephone logs shall document this effort. • TSG will collect and document contractor(s) effort to conduct a pre-bid conference to assist Section 3 business enterprises in completing bid documents for subcontracts.
• TSG will collect and document contractor(s) efforts to assist all potential subcontractors needing assistance in obtaining bonding, line of credit, or financing.

Pasadena / Dallas / Las Vegas / Oakland / San Diego
Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
Standard Rate Schedule
TSG’s rates cover all direct labor, overhead, fringe benefits and profit, and expenses such as travel (mileage, parking, etc.) and communication (postage, reports, telephone, etc.). Our standard billing rates are presented in the table below.

TSG Standard Rate Schedule
2024 2025 2026 2027 2028
Principal NC NC NC NC NC
VP/Ops $220 $225 $225 $230 $230
Senior Project
Manager $185 $190 $190 $195 $195
Project Manager 2 $174 $179 $179 $184 $184
Project Manager 1 $149 $154 $154 $159 $159
Senior Analyst $122 $126 $126 $130 $130
Analyst $111 $115 $115 $118 $118
Site Interviewer $103 $106 $106 $110 $110
Project Specific Pricing Methodology
We develop project-specific cost estimates by service (i.e., Labor Compliance Administration, PLA Administrator Services, etc.) based on the following factors:
• Construction Value
• Planned Construction Duration
• Number of Prime contracts to be monitored
• Estimated number of subcontracts to be monitored
Utilizing actual staff hours required to perform on similar past work, we develop estimates of the total average monthly staff hours necessary to provide monitoring for projects of similar size, duration, and construction team composition. We issue monthly invoices for a lump-sum amount calculated as the total fixed-fee for the project, divided by the sum of the planned construction duration plus two months for closeout activities. If actual construction activities continue beyond the planned end of construction, we will continue providing all services for the monthly lump-sum fee.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-598, Version: 1
Sale of Surplus Aerial Fire Apparatus
Approve a Resolution authorizing the sale of one surplus aerial firefighting apparatus to the City of Hollister for the sum of $500.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: FIRE DEPARTMENT
FROM: SAMUEL KLEMEK, FIRE CHIEF
TITLE: SALE OF SURPLUS AERIAL FIRE APPARATUS
RECOMMENDED MOTION:

It is recommended that the City Council approve a resolution authorizing the sale of one surplus aerial firefighting apparatus to the City of Hollister for the sum of $500.

EXECUTIVE SUMMARY:

The Salinas Fire Department has one (1) aerial fire apparatus previously surplused that no longer meets the needs of the department and is available for donation/sale. The Salinas Fire Department is recommending the sale of a 1988 Simon Duplex aerial fire apparatus previously used by the Salinas Fire Department for training purposes and is no longer needed.

BACKGROUND:

The vehicle is a 1988 Simon Duplex 100’aerial tractor/tiller apparatus that was purchased in used condition from the City of Santa Ana, CA over 10 years ago. This equipment was used to train SFD operators in the use of this apparatus prior to the acquisition of its first tractor/tiller apparatus in 2013 and it’s second tiller unit in 2015.

Resolution No. 21831 authorized the surplus of miscellaneous firefighting tools and equipment, vehicle accessories, and firefighting personal protective equipment (PPE) that are beyond useful life or no longer supported by the manufacturer for parts or repair. The Salinas Fire Department is seeking authorization to sell this unit to the Hollister Fire Department for training purposes as they await the construction and delivery of their own tractor/tiller apparatus.

Over the last 7 years, the SFD has not relied on this equipment for training as it utilizes its’ two current tractor/tiller apparatus for ongoing training and skills maintenance. The department has placed the unit in storage but has incurred recent maintenance costs of $500 to keep the unit roadworthy and operable. The proposed sales price remunerates the SFD for those recent expenditures and affords a local public safety partner in our region to realize a useful benefit.

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CEQA CONSIDERATION:

Not a Project.  The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No
STRATEGIC PLAN INITIATIVE:

This resolution supports the Council’s strategic plan initiative of Effective and Sustainable Government.

DEPARTMENTAL COORDINATION:

The Fire Department will work with the Public Works Fleet Maintenance division to ensure all SFD’s proprietary property and identification is removed prior to the transfer. The SFD will work with the Finance Department on completion of all necessary transfer and liability documentation.

FISCAL AND SUSTAINABILITY IMPACT:

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
1000 00.000-57.8020 Other Revenue
Surplus Property
$65,000 $500 20 6/11/24, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.

ATTACHMENTS:

Resolution
RESOLUTION NO. ____________(N.C.S.)
A RESOLUTION AUTHORIZING THE SALE OF A 1988 SIMON DUPLEX 100’ AERIAL

APPARATUS TO THE CITY OF HOLLISTER, CA
WHEREAS, the Salinas Fire Department has identified several vehicles and equipment that no longer meet service demands, necessitating their disposal; and WHEREAS, in accordance with Salinas Municipal Code section 12-15, the City Council is authorized to declare surplus and the disposal of certain vehicles and equipment; and WHEREAS, Resolution No. 21831 previously authorized the surplus of miscellaneous firefighting tools and equipment, vehicle accessories, and firefighting personal protective equipment (PPE) that are beyond useful life or no longer supported by the manufacturer for parts or repair; and WHEREAS, a 1988 Simon Duplex 100’ aerial apparatus identified as surplus fire apparatus, are recommended for sale to the City of Hollister, CA, which has expressed a need for this specific type fire apparatus to address the need to train the City’s fire department personnel in the operation of such equipment; and
WHEREAS, the Salinas Fire Department seeks authorization to sell said surplus vehicle in Resolution No. 21831 to the City of Hollister, a California charter city for the sum of five-hundred ($500) dollars as remuneration for recent repairs; and
WHEREAS, the Fire Chief and City Manager of the City of Hollister have agreed to the “asis” terms of the sale and acknowledge the current condition of the vehicle; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Salinas approves the declaration of certain vehicles and equipment as surplus and authorizes their disposal, in accordance with Salinas Municipal Code section 12-15; and BE IT FURTHER RESOLVED, that the City Council authorizes the sale of surplus fire apparatus identified as a 1988 Simon Duplex Tractor/Tiller Aerial Fire Apparatus to the City of Hollister, CA, a California charter city, in accordance with in accordance with Salinas Municipal Code section 12-16.

PASSED AND APPROVED the 22
nd day of October, 2024 by the following vote:

AYES:

NOES:

ABSENT: APPROVED:
_______________________________
Kimbley Craig, MAYOR
ATTEST:
____________________________
Patricia M. Barajas, CITY CLERK
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-599, Version: 1
Emergency Pipe Repair - Lake Street Lift Station
Approve a Resolution authorizing the City Manager to execute and Agreement with Ellison Environmental, Inc. dba Fluid Resource Management for the emergency pipe repairs at the Lake Street Lift Station in an amount not to exceed $59,360; and an Agreement with Green Line Liquid Waste for the emergency response to the pump house flooding in an amount not to exceed $2,240.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: PUBLIC WORKS ENVIRONMENTAL MAINTENANCE
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: GARY GABRIEL, WASTEWATER MANAGER
TITLE: EMERGENCY PIPE REPAIR – LAKE STREET LIFT STATION RECOMMENDED MOTION:

A motion to approve a Resolution authorizing the City Manager to execute:
1) The Agreement with Ellison Environmental, Inc. dba Fluid Resource Management for the emergency pipe repairs at the Lake Street Lift Station in an amount not to exceed $59,360; and
2) The Agreement with Green Line Liquid Waste for the emergency response to the pump house flooding in an amount not to exceed $2,240.

EXECUTIVE SUMMARY:

On September 28, the Lake Street Lift Station experienced an issue with failed piping causing the pump house to flood. Green Line Liquid Waste Company was called out to clear the flooded area.

Ellison Environmental, Inc. dba Fluid Resource Management was then called to repair the failed piping that caused the flood. This emergency repair of force main piping is critical to the continued movement of sanitary sewer wastewater that is discharged 24 hours a day. The repair is essential for the health and safety operations of continued pumping of wastewater from the businesses and residents of Salinas to prevent a sanitary sewer overflow (SSO) from the Sanitary Sewer System or Lift Station Facility.

BACKGROUND:

Lake Street Lift Station is the largest sanitary sewer lift station in the City of Salinas. Lake Street Lift Station is located near the center of the sewer collection system at 146 East Rossi Street. This lift station collects flow from residential, commercial, industrial, hotels, and schools from a large upstream area of approximately 4,108 acres. Lake St. Lift Station moves an average of 3 million gallons of raw sewage a day from upstream dischargers. The Wastewater Division of Public Works oversees operations and maintenance of the Lake Street Lift Station. Inspections and maintenance are performed daily to keep the facility functioning and processing theses flows that are received from the upstream dischargers 24 hours per day 7 days per week.

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The sanitary sewer system is regulated under a waste discharge requirement (WDR) permit administered by the California Regional Water Quality Control Board and overseen by the Central Coast Waterboard to maintain the sanitary sewer system as prescribed in the permit.

Lake Street lift station is a critical component of the wastewater movement and process for downstream treatment of the generated wastewater. This repair is needed to continue wastewater movement and process without any potential delays or down time.

Green Line Liquid Waste Company was contacted during the emergency for pumping services of the dry well that was flooded due to the pipe failure. Greenline was contacted because they are a local pumping service that respond to emergencies. The City of Salinas has used Greenline service in the past for projects and emergencies. Ellison Environmental, Inc. dba Fluid Resource Management was contacted to perform the emergency repairs to piping. Ellison Environmental, Inc. dba Fluid Resource Management was contacted because they have completed lift station repairs at Lake St and are familiar with the functionality of the facility, and they were available to start emergency repairs right away. Ellison Environmental, Inc. dba Fluid Resource Management also recently submitted an RFP to the City for lift station repairs.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No, Government Code §84308/Levine Act does not apply to this item.

STRATEGIC PLAN INITIATIVE:

This relates and supports the Council’s Strategic goal area of Safe, Livable Community, Excellent Infrastructure, and Quality of Life.

DEPARTMENTAL COORDINATION:

Public Works Wastewater Division worked closely with Public Works Admin and Maintenance Divisions in preparation of the agreement and with the Finance Division to ensure sufficient funds are available.

Page | 3
FISCAL AND SUSTAINABILITY IMPACT:

City-Wide Landscape Services for Greenbelts, Medians & Roundabouts:

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25 CIP
Budget Page
Last Budget
Action (Date,
Resolution)*
5800 50.9743 Repairs to Lift
Stations
$167,564.75 $61,600.00 48 6/11/24, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.

ATTACHMENTS:

Resolution
Agreement - Ellison Environmental, Inc. dba Fluid Resource Management Quote
Agreement – Green Line Liquid Waste
Invoice
Page | 1
RESOLUTION NO. (N.C.S.)
EMERGENCY PIPE REPAIR – LAKE STREET LIFT STATION
WHEREAS, on September 28, 2024, Pump one force main piping at Lake Street Lift Station experienced a pipe failure; and
WHEREAS, Green Line Liquid Waste was called out to respond the flooding at the Lake Street Lift Station; and
WHEREAS, Ellison Environmental, Inc dba Fluid Resource Management was called for the emergency repair to prevent a health hazard to the Salinas community.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the City Manager to execute an agreement with Ellison Environmental, Inc. dba Fluid Resource Management for an amount not to exceed $59,360 and an agreement with Green Line Liquid Waste for an amount not to exceed $2,240 for completed emergency repairs at the Lake Street Lift Station.

PASSED AND APPROVED this 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Agreement for Services v. July 2024 Page 1 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024

AGREEMENT FOR SERVICES BETWEEN
THE CITY OF SALINAS AND ELLISON ENVIRONMENTAL, INC. DBA FLUID

RESOURCES MANAGEMENT
Emergency Repair – Lake Street Lift Station
THIS AGREEMENT is executed this 22 day of October 2024, (“Agreement” or “Contract”) between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Ellison Environmental, Inc. dba Fluid Resource Management, a California corporation/dba (hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Perform emergency pipe repairs at the Lake Street Lift Station. Scope of work is further discussed in Contractor’s Proposal dated 10/01/24, Attachment B.

3. Term. The work under this Agreement shall commence October 1, 2024, and shall be completed by November 1, 2024, unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay, and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, not to exceed Fifty-Nine Thousand Three Hundred Sixty Dollars ($59,360), as more fully described in title of Contractors fee schedule, Attachment B. Contractor has no right of reimbursement for expenses under this Agreement.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

7. Indemnification. Contractor shall hold harmless, defend at its own expense, and Agreement for Services v. July 2024 Page 2 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
indemnify City and its officers, officials, employees, agents, and volunteers from and against all liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

13. Validity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated in any way.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

15. Laws. Contractor agrees that in the performance of this Agreement it will comply with all applicable State, Federal and local laws and regulations including those outlined in Attachment C. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.

Agreement for Services v. July 2024 Page 3 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024

CITY OF SALINAS
__________________________________
René Mendez, City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
Agreement for Services v. July 2024 Page 4 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by Agreement for Services v. July 2024 Page 5 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving Agreement for Services v. July 2024 Page 6 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Payment bond

2. Performance bond

Agreement for Services v. July 2024 Page 7 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Attachment B
Agreement for Services v. July 2024 Page 8 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Agreement for Services v. July 2024 Page 9 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Agreement for Services v. July 2024 Page 10 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.

The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:

Additionally, all contractors are required to request registered apprentices (DAS 142 form).

Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.

3. Certified Payroll Records: All contractors, including subcontractors, must maintain and file certified payroll records (“CPRs”) pursuant to Labor Code §1776. Additionally, all contractors and subcontractors must furnish certified payroll records into the DIR’s Agreement for Services v. July 2024 Page 11 of 11
Ellison Environmental, Inc. dba Fluid Resource Management Oct 2024
Electronic Certified Payroll Reporting (“eCPRs”) database (https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.

4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.

7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):

Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.

8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.

10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.

12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.

DATE Oct 1, 2024

PROPOSAL SUBMITTED TO
QB
PHONE
- W24110
City of Salinas C/O Gary Gabriel
STREET
426 Work Street

CITY, STATE, AND ZIP CODE
Salinas, CA, 93901

ENGINEER
N/A
Dear Mr. Gabriel,

DATE OF PLANS
N/A
(831) 758-7103

JOB NAME
Lake Street Emergency Repairs

JOB LOCATION
Salinas, CA

JOB PHONE
N/A
FRM proposes to furnish all labor, materials and equipment to complete the following scope of work; SCOPE OF WORK:

Provide emergency services to correct failed piping at the Lake Street Lift Station including1. Erecting a scaffolding system to allow staff to safely access the station and piping.

2. Fabricate a new stainless steel pipe support and install it on the tee, preventing further movement.

3.Rig and remove the existing force main vertical riser.

4. Provide new flanged coupling adapters to replace the failed existing. Remove and replace the failed fittings.

5. Reinstall the force main and tighten the new adapters.

6. Fabricate and install 2 additional stainless steel pipe supports to prevent future failures.

7. Disassemble scaffolding and remove from the project.

Project is estimated to cost $56,600.00 and will be performed on a time and materials basis.

Adder- Replace a section of 4" gravity sewer that runs on the ceiling of the station. Piping section will be what is accessible with the current scaffolding. Cost is estimated at $2,760.00 and will be performed on a time and materials basis.

All of the above work to be completed in a substantial and workmanlike manner according to standard practices for the sum of Time and Materials
($T&M )
Payments are due Net 30 days from the date of invoice unless stated otherwise in this contract.

Any alteration or deviation from the above specifications involving extra cost of materials or labor will only be executed upon written orders for same, and will become an extra charge over the sum mentioned in this contract. All agreements must be made in writing. This proposal is valid for 30 days.

NOTICE
Contractors are required by law to be licensed and
regulated by the Contractors State License Board. Any
questions concerning a contractor may be referred to
the registrar of the board whose address is

CONTRACTORS STATE LICENSE BOARD
1020 N Street, Sacramento, California 95814

ACCEPTANCE
Respectfully Submitted,

FLUID RESOURCE MANAGEMENT
BY
License No. 937346
You are hereby authorized to furnish all materials and labor required to complete the work mentioned in the above proposal, for which City of Salinas PROPOSAL and CONTRACT
agrees to pay the amount mentioned in said proposal, and according to the terms and conditions thereof (See conditions on next page).

DATE: ACCEPTED BY:

NOTICE UNDER THE MECHANIC'S LIEN LAW (CALIFORNIA CODE OF CIVIL PROCEDURE, SECTION 1181 ET SEQ.), ANY CONTRACTOR, SUBCONTRACTOR, LABORER,

SUPPLIER OR OTHER PERSON WHO HELPS TO IMPROVE YOUR PROPERTY BUT IS NOT PAID FOR HIS WORK OR SUPPLIES, HAS A RIGHT TO ENFORCE A CLAIM AGAINST YOUR PROPERTY. THIS MEANS THAT, AFTER A COURT HEARING, YOUR PROPERTY COULD BE SOLD BY A COURT OFFICER AND THE PROCEEDS OF THE SALE USED TO SATISFY THE INDEBTNESS. THIS CAN HAPPEN EVEN IF YOU HAVE PAID YOUR OWN CONTRACTOR IN FULL, IF THE SUBCONTRACTOR, LABORER, OR SUPPLIER REMAINS UNPAID.

TERMS AND CONDITIONS

1. Certificates of insurance will be issued when requested of Contractor.

2. The Contract, plans and specifications are intended to supplement each other. In case of conflict. however, the specifications shall control the plans, and the provisions of this contract shall control both.

3. The Contractor shall be excused for any delay in completion of the contract caused by acts of God, acts of the Owner or the Owner's agent, employee or independent Contractor, stormy weather, labor trouble, acts of public utilities, public bodies or inspectors, extra work, failure of the Owner to make progress payments promptly, or other contingencies unforeseeable by or beyond the reasonable control of the Contractor.

4. Should the Contractor fail to make any payments required under this paragraph, Owner may make such payments on behalf of Contractor, and Contractor shall on demand reimburse Owner for the amount actually paid, but Owner shall not by means of assignment or otherwise be entitled to collect any greater amount from Contractor than the amount actually paid for labor or material under this paragraph.

5. Taxes, assessments and permits are the Owner's responsibility.

6. Survey, staking and locations of existing utilities to be provided by Owner.

7. Extra Work: Should the Owner, construction lender, architect or engineer, or any public body or inspector direct any modification or addition to the work covered by this contract, the contract price shall be adjusted accordingly.

8. Modifications or additions to the work shall be executed only when a Contract Change Order has been signed by both the Owner and the Contractor. The change in the Contract Price caused by such Contract Change Order shall be as agreed in writing, or if the parties are not in agreement as to the change in Contract Price, then the Contractor's actual cost for all labor, equipment, subcontracts and materials, plus a contractor's fee of 20% shall be the change in Contract Price.

9. Contractor shall promptly notify the Owner of (a) subsurface or latent physical conditions at the site differing material from those indicated in this contract, or (b) unknown physical conditions differing materially from those ordinarily encountered and generally recognized as occurring in work of the character provided for in this contract. Any expense incurred due to such conditions shall be paid for by Owner as added work.

10. Owner agrees to sign and record a notice of completion within five days after the project is complete and ready for occupancy. If Owner fails to so record notice of completion, then Owner hereby appoints Contractor as Owner's agent to sign and record a notice of completion on behalf of Owner. This agency is irrevocable and is an agency coupled with an interest.

11. Owner will procure at his own expense and before the commencement of any work hereunder, fire insurance with course of construction, vandalism and malicious mischief clauses attached, such insurance to be in the sum at least equal to the contract price with loss, if any, payable to any beneficiary under any deed or trust covering the project, such insurance to name the Contractor and his subcontractors as additional insured and to protect Owner, contractor may procure such insurance as agent for and at the expense of Owner, but is not required to do so. If the project is destroyed or damaged by an accident, disaster, or calamity, such as fire, storm, flood, landslide, subsidence, or earthquake, or by theft or vandalism, any work done by Contractor in rebuilding or restoring the project shall be paid for by Owner. Contractor shall carry Workman's compensation Insurance for protection of Contractor's employee during the progress of the work. Owner shall obtain and pay for insurance against injury to his own employees and persons under Owner's direction and persons on the job site at Owner's invitation.

12. Contractor shall have the right to stop work immediately if any payment shall not be made timely to Contractor under this agreement, Contractor may keep the job idle until all payments due are received. Furthermore, the Contractor may at his option terminate the contract and the Owner shall be liable to the Contractor for breach of contract.

13. No action of any character arising from or related to this contract, or the performance thereof, shall be commenced by either party against the other more than two years after completion or cessation of work under this contract.

14. Upon completion of work, Contractor will remove debris and surplus material created by his operation from the Owner's property, and leave it in a neat and clean condition.

15. Neither party may assign this contract without written consent of the other party.

16. In the event the parties hereto become involved in litigation arising out of this contract, or the performance or breach thereof, the court in such litigation or in a separate suit, shall award reasonable costs, expenses and attorneys fees to the prevailing party. The courts shall not be bound by any court fee schedule, and may in the interest of justice, award the full amount of costs, expenses and attorneys fees incurred in good faith.

17. Contractor reserves right to engage subcontractors for any portion of the contracted work.

In the event the Owner occupies the project or any part thereof before the Contractor has received all payment due under this contract, such occupancy shall constitute full and unqualified acceptance of all of the Contractor's work by the Owner and the Owner agrees that such occupancy shall be a waiver of any and all claims against the Contractor.

The Contract shall be governed by the law of the State of California. All claims or disputes between the Contractor and the Owner, or with any other entity, arising out of, or relating to, the Contract Documents or the breach thereof shall be adjudicated in the Superior Court of San Luis Obispo, California.

20. The Contractor shall indemnify and save harmless Owner, including their officers, employees, affiliates, parent and subsidiaries, from and against any and all liability, claims, suits, losses, damages, costs, expenses, reasonable attorney's fees, or liability to the extent arising out of or resulting from any negligent acts, errors or omissions of Contractor, and its officers, employees, agents or sub consultants arising out of or in connection with Contractor operations to be performed under this agreement.

The Owner shall indemnify and save harmless Contractor, including their officers,, employees, affiliates, parent and subsidiaries, from and against any and all liability, claims, suits, losses, damages, costs, expenses, reasonable attorney's fees, or liability to the extent arising out of or resulting from any negligent acts, errors or omissions of Owner, and its officers, employees, affiliates, parent and subsidiaries arising out of or in connection with operations to be performed under this agreement, including the failure to use equipment in a manner as recommended or advised by Contractor as such failure will void any and all warranties from Contractor to the Owner.

Client Signature Date

18. 19.

21. Agreement for Services v. July 2024 Page 1 of 9
Green Line Liquid Waste
September 2024

AGREEMENT FOR SERVICES BETWEEN

THE CITY OF SALINAS AND GREEN LINE LIQUID WASTE
Emergency Lake Street Lift Station Sewer Dry Well Pumping Service THIS AGREEMENT is executed this 22 day of October, 2024, (“Agreement” or “Contract”) between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”) and Green Line Liquid Waste, a California corporation (hereinafter “Contractor”).

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Contractor hereby agrees to provide to the City, as the scope of services under this Agreement, the following services: Perform Emergency Sewer Dry Well Pumping. Scope of work is further discussed in Contractor’s Proposal dated 09/30/24, Attachment B.

3. Term. The work under this Agreement shall commence September 28, 2024, and shall be completed by October 1, 2024, unless City grants a written extension of time as set forth in Section 2 above.

4. Payment. City agrees to pay and Contractor agrees to accept as full and fair consideration for the performance of this Agreement, not to exceed Two Thousand Two Hundred Forty Dollars ($2,240), as more fully described in title of Contractors fee schedule, Attachment B. Contractor has no right of reimbursement for expenses under this Agreement. Compensation shall become due and payable 30 days after City’s approval of Contractor’s submission of monthly written invoices to the City. The payment of any compensation shall be contingent upon performance of the terms and conditions of this Agreement to the satisfaction of the City. If City determines that the work set forth in the written invoice has not been performed in accordance with the terms of this Agreement, City shall not be responsible for payment until such time as the work has been satisfactorily performed.

6. Insurance. Contractor shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Attachment A hereto.

7. Indemnification. Contractor shall hold harmless, defend at its own expense, and indemnify City and its officers, officials, employees, agents, and volunteers from and against all liability, claims, damages, losses, and/or expenses including reasonable City attorney fees arising Agreement for Services v. July 2024 Page 2 of 9
Green Line Liquid Waste
September 2024
from all acts or omissions of Contractor or its officers, agents, or employees arising out of the performance of the work under this Contract, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the sole negligence or willful misconduct of the City.

8. Licensing. Contractor warrants that it is properly licensed to perform the work specified under this Agreement, including but not limited to possession of a current City business license.

10. Agency. In performing the services specified under this Agreement, Contractor is hereby deemed to be an independent contractor and not an agent or employee of City.

11. Non-Assignability. The rights and obligations of Contractor hereunder are not assignable and cannot be delegated without written consent of City.

14. Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on the day and year first written above.

CITY OF SALINAS
Agreement for Services v. July 2024 Page 3 of 9
Green Line Liquid Waste
September 2024
__________________________________
René Mendez, City Manager
APPROVED AS TO FORM:
_________________________________
Christopher A. Callihan, City Attorney, or
Rhonda Combs, Assistant City Attorney

CONTRACTOR
___________________________________
By (Printed Name):___________________
Its (Title):___________________________
Agreement for Services v. July 2024 Page 4 of 9
Green Line Liquid Waste
September 2024
Attachment A
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract, and for three years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his/her/its officers, agents, representatives, employees, and/or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by Agreement for Services v. July 2024 Page 5 of 9
Green Line Liquid Waste
September 2024
or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Contractor to the City.

Maintenance of Insurance
Maintenance of insurance by Contractor as specified shall in no way be interpreted as relieving Agreement for Services v. July 2024 Page 6 of 9
Green Line Liquid Waste
September 2024
Contractor of its indemnification obligations or any responsibility whatsoever and the Contractor may carry, at its own expense, such additional insurance as it deems necessary.

Agreement for Services v. July 2024 Page 7 of 9
Green Line Liquid Waste
September 2024
Attachment B
Agreement for Services v. July 2024 Page 8 of 9
Green Line Liquid Waste
September 2024
Attachment C
DEPARTMENT OF INDUSTRIAL RELATIONS’ STATE LABOR CODE
Labor Law Requirements
(CCR Title 8, Section 16421)
This public works project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). All work shall be in accordance with wage scales and applicable determinations made by the Director of the DIR, as provided by Article 2, Chapter 1, Division 2, Part 7 of the Labor Code of the State of California, commencing with §1771.

The Federal and State Labor Law requirements applicable to the Agreement are composed of, but not limited, to the following items:

Additionally, all contractors are required to request registered apprentices (DAS 142 form).

Penalties for failure to pay prevailing wages (for non-exempt projects) and failure to employ apprentices include forfeitures and debarment under Labor Code §§1775 and 1777.7.

3. Certified Payroll Records: All contractors, including subcontractors, must maintain and file certified payroll records (“CPRs”) pursuant to Labor Code §1776. Additionally, all Agreement for Services v. July 2024 Page 9 of 9
Green Line Liquid Waste
September 2024
contractors and subcontractors must furnish certified payroll records into the DIR’s Electronic Certified Payroll Reporting (“eCPRs”) database (https://efiling.dir.ca.gov/eCPR/pages/eCPROnlineForm.jsp). Penalties apply to Contractor and any Subcontractors for failure to do so under Labor Code §1777.

4. Subcontracting: Contractors are required to list all subcontractors hired to perform work on this public works agreement.

7. Nondiscrimination in Employment – Equal Employment Opportunity (“EEO”):

Employment discrimination is prohibited, pursuant to Labor Code §1777.6, the Government Code, and Title VII of the Civil Rights Act of 1964.

8. Kickbacks Prohibited: Contractors and subcontractors are prohibited from recapturing wages illegally by accepting or extracting “kickbacks” from employee wages pursuant to Labor Code §1778.

10. Unfair Competition Prohibited: Contractors and subcontractors are prohibited from engaging in unfair competition as specified under Business and Professions Code §§17200 - 17208.

12. OSHA: Contractors and subcontractors must abide by the Occupational, Safety, and Health Laws and regulations that apply.

1.000 EMERGENCY RESPONSE

4.000 TRUCK HOURS LABOR - AFTER HOURS

1.000 UNLOADING FEE

1.000 FUEL SURCHARGE
2,240.00
2,240.00
EA 300.000 300.00
HR 350.000 1,400.00
EA 510.000 510.00
EA 30.000 30.00
Subtotal:

Invoice 96784
Remarks: EMERGENCY CALL - NEED VAC TRUCK PUMP HOUSE FLOODED - RAY 560 Crazy Horse Canyon Rd., Salinas, CA 93907
Phone: (831) 422-2298
Quantity Description U/M Extension
SERVICES RENDERED: 9/28/2024
Total:

Print Date: 09/30/24 Page: 1
Bill to: Job: 359824
Payment Terms: DUE UPON RECEIPT
Customer Code: 10166
Customer P.O. #: STINV# - - - -
Salesperson:

CITY OF SALINAS
200 LINCOLN AVE.

SALINAS, CA 93901
146 E. ROSSI STREET,
SALINAS, CA 93901
Unit Price
Total:

Invoice #: 96784 Date: 09/30/24
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-607, Version: 2
ESRI Software Maintenance Renewal
Approve a Resolution authorizing the Purchasing Agent to purchase the renewal of various ESRI GIS products in an amount not to exceed $61,424.52.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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Page | 1

CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: TELAT YALCIN, GIS ADMINISTRATOR
TITLE: ESRI SOFTWARE MAINTENANCE RENEWAL
RECOMMENDED MOTION:

A motion to approve a resolution authorizing the Purchasing Agent to purchase the renewal of various ESRI GIS products in an amount not to exceed $61,424.52.

EXECUTIVE SUMMARY:

The City of Salinas maintains a Geographical Information System (GIS) using the ESRI product line. GIS is a framework for gathering, managing, and analyzing data. The ESRI licensing program is for customers, like the City who use ESRI products to access, update and manage a GIS system.

BACKGROUND:

The city currently uses ESRI software and platforms for its day-to-day GIS operations. Software includes ArcGIS desktop, ArcGIS spatial analyst, ArcGIS online creator, ArcGIS Developer, ArcGIS enterprise, and ArcGIS enterprise editor. Each of these applications requires seat licenses that are renewed on an annual basis. Maintaining software licenses is necessary for the maintenance and operations of multiple staff activities and maintaining staff collaboration tools.

The current resolution will authorize the continuation of maintaining core ESRI desktop environments. Funding has been submitted for Council approval as part of the FY 2024-25 Annual Budget.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

Page | 2
STRATEGIC PLAN INITIATIVE:

This request supports City Council’s Strategic Goals and Strategies of Effective and Culturally Responsive Government, by ensuring that the information systems can support City programs, projects, and City services for the community.

DEPARTMENTAL COORDINATION:

The GIS Division will continue to work with all affected departments during software upgrades or patch releases.

FISCAL AND SUSTAINABILITY IMPACT:

Funding for this purchase is part of the FY 2024-25 Annual Budget. There is no recommended action for new appropriations.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution) *
1000 50.5128-63.4980 Outside servicesMaintenance
Software
$160,246.17 $61,424.52 316 6/11/24, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.

ATTACHMENTS:

1. Resolution

2. ESRI Quote
RESOLUTION NO.____________(N.C.S.)

A RESOLUTION OF THE CITY COUNCIL OF SALINAS APPROVING THE

RENEWAL OF ESRI LICENSES
WHEREAS, the City desires to renew and maintain its ESRI application licensing; and WHEREAS, ESRI will provide application software licensing for the City of Salinas.

NOW, THEREFORE, BE IT RESOLVED BY THE SALINAS CITY COUNCIL pursuant to Section 12-27 of the Salinas Municipal Code, hereby authorizes the Purchasing Agent to purchase the renewal of ESRI licenses in an amount not to exceed $61,424.52.

PASSED AND APPROVED this 22
nd day of October by the following vote:

YES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
______________________________
Kimbley Craig, Mayor
ATTEST:
_______________________________
Patricia M. Barajas, City Clerk
Subject: Renewal Quotation
Date: 10/02/2024
To: Telat Yalcin
Organization: City of Salinas
Public Works
Fax #: 8317587935 Phone #: 8317587440
From: Heather Carmody
Fax #: 909-793-4801 Phone #: +19093692314 Ext. 2314
Email: [email protected]
Number of pages transmitted Quotation #26228758
(including this cover sheet): 5 Document Date: 08/03/2024 Please find the attached quotation for your forthcoming term. Keeping your term current may entitle you to exclusive benefits, and if you choose to discontinue your coverage, you will become ineligible for these valuable benefits and services.

If your quote is regarding software maintenance renewal, visit the following website for details regarding the maintenance program benefits at your licensing level
http://www.esri.com/apps/products/maintenance/qualifying.cfm All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your coverage at a later date.

Please note: Certain programs and license types may have varying benefits. Complimentary User Conference registrations, software support, and software and data updates are not included in all programs.

Customers who have multiple copies of certain Esri licenses may have the option of supporting some of their licenses with secondary maintenance.

For information about the terms of use for Esri products as well as purchase order terms and conditions, please visit
http://www.esri.com/legal/licensing/software-license.html If you have any questions or need additional information, please contact Customer Service at 888-377-4575 option 5.

Esri Inc
380 New York St
Redlands CA 92373-8118
10 1 52384 3,475.00 3,475.00
ArcGIS Desktop Advanced Concurrent Use Primary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
1010 9 52385 1,400.00 12,600.00
ArcGIS Desktop Advanced Concurrent Use Secondary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
2010 1 86497 1,750.00 1,750.00
ArcGIS Desktop Standard Concurrent Use Primary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
3010 2 86500 1,400.00 2,800.00
ArcGIS Desktop Standard Concurrent Use Secondary Maintenance City of Salinas
Public Works
Geographic Information Systems
200 Lincoln Ave
Salinas CA 93901-2639
Attn: Telat Yalcin
Email: [email protected]
_______________________________________________________________________ Please note Esri has introduced a price change and this quote reflects current pricing for your organization. It is important to us that we are able to continue to deliver value through enhancements to products, solutions, and capabilities.

Your renewal provides access to all the benefits you are familiar with, which you can review at https://go.esri.com/maintenance For questions related to the price change, please reach out to your assigned Esri Account Manager.

Quotation is valid for 90 days from document date.

Any estimated sales and/or use tax has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state taxes directly, then prior to invoicing, your organization must provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction.

Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

To expedite your order, please reference your customer number and this quotation number on your purchase order.

Send Purchase Orders To:

Environmental Systems Research Institute, Inc.
380 New York Street
Redlands, CA 92373-8100
Please include the following remittance address
on your Purchase Order:

Environmental Systems Research Institute, Inc.
,
Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________ Date: 08/03/2024 Quotation Number: 26228758
380 New York St
Redlands, CA 92373-8118
Phone: +190936923142314
Fax #: 909-793-4801
Customer Number: 8985
For questions regarding this document, please contact Customer Service at 888-377-4575.

Quotation
_______________________________________________________________________________ Start Date: 11/02/2024
End Date: 11/01/2025
4010 1 87232 580.00 580.00
ArcGIS Spatial Analyst for Desktop Concurrent Use Primary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
5010 2 87233 230.00 460.00
ArcGIS Spatial Analyst for Desktop Concurrent Use Secondary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
6010 1 87198 580.00 580.00
ArcGIS 3D Analyst for Desktop Concurrent Use Primary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
7010 1 100571 580.00 580.00
ArcGIS Network Analyst for Desktop Concurrent Use Primary Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
8010 5 153148 700.00 3,500.00
ArcGIS Online Creator User Type Annual Subscription
Start Date: 11/02/2024
End Date: 11/01/2025
9010 1 191362 1,800.00 1,800.00
ArcGIS Developer Bundle Migration from ArcGIS Developer Professional Annual Subscription Start Date: 11/02/2024
End Date: 11/01/2025
10010 2 161328 5,900.00 11,800.00
ArcGIS Enterprise Standard Up to Four Cores Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________

Page 2 ends

Date: 08/03/2024 Quotation Number: 26228758
380 New York St
Redlands, CA 92373-8118
Phone: +190936923142314
Fax #: 909-793-4801
Quotation
11010 1 161366 2,875.00 2,875.00
ArcGIS Network Analyst for ArcGIS GIS Server Standard Up to Four Cores Maintenance Start Date: 11/02/2024
End Date: 11/01/2025
12010 1 165537 1,311.78 1,311.78
ArcGIS Online Professional Plus (formerly Advanced) User Type Annual Subscription
Start Date: 07/11/2025
End Date: 11/01/2025
13010 60 166893 250.00 15,000.00
ArcGIS Enterprise Contributor (formerly Editor) User Type Annual Subscription Start Date: 11/02/2024
End Date: 11/01/2025
14010 1 178624 846.85 846.85
ArcGIS Business Analyst Standard Online Bundle Annual Subscription Start Date: 01/25/2025
End Date: 11/01/2025
15010 1 180347 1,465.89 1,465.89
ArcGIS Indoors for ArcGIS Online Professional or Professional Plus User Type Annual Subscription Start Date: 07/02/2025
End Date: 11/01/2025
Item Subtotal 61,424.52
Estimated Tax 0.00
Total USD 61,424.52
DUNS/CEC: 06-313-4175 CAGE: 0AMS3
Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________

Page 3 ends

Date: 08/03/2024 Quotation Number: 26228758
380 New York St
Redlands, CA 92373-8118
Phone: +190936923142314
Fax #: 909-793-4801
Quotation
Renew online by using a credit card, purchase order, or by requesting an invoice at https://www.esri.com/en-us/quote-order/renew.

If there are any changes required to your quotation please respond to this email and indicate any changes in your invoice authorization.

If you choose to discontinue your support, you will become ineligible for support benefits and services. All maintenance fees from the date of discontinuation will be due and payable if you decide to reactivate your support coverage at a later date.

The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at
http://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf , and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at http://assets.esri.com/content/dam/esrisites/media/legal/ma-full/ma-full.pdf apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at http://www.esri.com/en-us/legal/terms/state-supplemental apply to some state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings.

Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin.

In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g.

MPA, EA, GSA, BPA) on your ordering document.

Item Qty Material# Unit Price Extended Price
_______________________________________________________________________________ _______________________________________________________________________________

Page 4 ends

Date: 08/03/2024 Quotation No: 26228758 Customer No: 8985 380 New York St
Redlands, CA 92373-8118
Phone: +190936923142314
Fax #: 909-793-4801
Quotation
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-608, Version: 1
Agreement with Salinas Valley TVB, Inc. for the operation of the Salinas California Welcome Center Approve a Resolution authorizing the City Manager to execute an Agreement with the Salinas Valley TVB, Inc to operate a California Welcome Center in Salinas not to exceed the amount the City collects through Tourism Improvement District revenues.

City of Salinas Page 1 of 1 Printed on 10/17/2024
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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
BY: MICHAEL GOMEZ, ECONOMIC DEVELOPMENT ANALYST
TITLE: AGREEMENT WITH SALINAS VALLEY TVB, INC FOR THE

OPERATION OF THE SALINAS CALIFORNIA WELCOME
CENTER
RECOMMENDED MOTION:

A motion to approve a Resolution authorizing the City Manager to execute an Agreement with the Salinas Valley TVB, Inc to operate a California Welcome Center in Salinas not to exceed the amount the City collects through Tourism Improvement District revenues.

EXECUTIVE SUMMARY:

Since June 2011 the City has entered into an Agreement with the Salinas Valley TVB, Inc (SVTVB) to financially support the operation of a California Welcome Center in Salinas. The California Welcome Center (CWC) is in the Freight Building adjacent to the Salinas Train Station at the Intermodal Transportation Center. This staff report outlines the terms and conditions by which Tourism Improvement District (TID) assessment retained by the City will be used to support the SVTVB’s operation of the CWC and its activities to promote Salinas as a tourist destination and increase the number of room-night stays in the City. The total amount of compensation for services provided will not exceed the amount of assessment collected, minus one percent (1%) to cover the City’s administrative costs. The 2024-2025 Budget estimates and appropriates assessment revenue of $100,000 for this fiscal year. The SVTVB is to invoice the City quarterly and is required to provide reporting and documentation to enable the City to meet its reporting obligations to MCCVB regarding the use of the TID assessment funds. The term of this Agreement is July 1, 2024, to August 30, 2025.

BACKGROUND:

Tourism Improvement Districts (TIDs) are special assessment districts authorized by the State that allow hospitality businesses to assess themselves to fund efforts to promote tourism within a particular region. The City of Salinas collects $2.50 per room night at lodging facilities in the City of Salinas in association with a TID administered by the Monterey County Convention and Visitors Bureau (MCCVB). Of the assessment collected, $2.00 per room night is remitted to the MCCVB and the remaining $0.50 per room night is retained by the City (Assessment). Assessment Page | 2
collected may be spent at the discretion of the City but must be used for the purpose of increasing the number of room-night stays within the City. The City is responsible for ensuring that the assessment is spent appropriately, as well as tracking and reporting outcomes on the use of the Assessment to the MCCVB. Historically, this assessment has been provided to the SVTVB to support their operation of a designated California Welcome Center in the City of Salinas at the Freight Building adjacent to the Salinas Train Station at the Intermodal Transportation Center.

Under a separate Agreement, the SVTVB currently leases space from the City to house the CWC.

The City currently receives $2,002.11 per month for the use of the space.

The California Welcome Center (CWC) provides visitors with information on local activities, sites of interest, and dining and lodging options in Salinas using promotional materials, brochures, and staff to answer questions. CWC activities further the TID goal of increasing room-night stays in Salinas. This Agreement outlines the terms under which the City will convey TID assessment to the SVTVB to operate the Salinas CWC and to further promote overnight stays at lodging facilities within the City of Salinas. A summary of Agreement terms is provided below.

Services: The CWC will continue to operate seven (7) days per week. This requirement will be waived for any holidays recognized by the City or local or state lawful health order. The SVTVB is to provide documentation that includes, but is not limited to:
a) the number of visitors to the CWC (on a daily basis), b) an itemized summary of marketing materials (whether presented electronically or on a physical medium such as paper or canvas) which provide information regarding potential lodging options within the City of Salinas,
c) an itemized list of additional marketing materials used to attract visitors to the CWC or the Salinas area,
d) a summary (when available) of how many printed materials were provided to visitors, the number of visitors to SVTVB’s website, and
e) any additional information which can be collected or derived from collected data using formulas or software commonly utilized and accepted throughout the industry.

SVTVB shall also convene once a month with city staff and MCCVB to collaborate on strategies aimed at boosting overnight stays, in addition SVTVB shall meet and confer with the hotel operators within the City of Salinas not less than once per year to discuss opportunities for the CWC to increase the number of overnight stays within the City of Salinas. These items can include:
a) Promotional packages
b) Highlighting local events
c) Collaborating with local businesses to created bundle experiences. d) Promoting cultural and historical tours
e) Creating seasonal attractions to draw crowds.
f) Engaging travel influencers/visitors.

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CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action of approving this Agreement to use the City’s TID assessment to fund CWC operations is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378) because the Agreement and use of TID assessment does not cause a direct or foreseeable indirect physical change on or in the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

STRATEGIC PLAN INITIATIVE:

The promotion of tourism within the City of Salinas relates to the Council Goal of Economic Development. Increasing the number of room-night stays in the City leads to increased Transient Occupancy Tax revenue and Sales Tax revenue collected by the City. Visitors staying overnight tend to eat and shop locally, supporting local businesses to thrive and contributing to the community’s economic health.

DEPARTMENTAL COORDINATION:

This Agreement was prepared by the Economic Development Division of the Community Development Department. Economic Development coordinated with the Finance Department and Legal in the preparation of this report and Agreement. The Finance Department collects the TID assessment, confirms available fund balance, and processes remittances. Legal has reviewed the Agreement. In addition, and the California Welcome Center has worked extensively with the Public Works Department with regards to its operations in the Freight Building.

FISCAL AND SUSTAINABILITY IMPACT:

There will be no impact to the General Fund. This Agreement will be fully funded from TID assessment collected and retained by the City between July 1, 2024, and August 30, 2025. The City will retain 1% of Assessment collected to cover administrative costs. The 2024-2025 amended budget estimates and appropriates TID Assessment revenue of $100,000. Trust Fund accounts for the collection of Assessment and payment to SVTVB are established as 8813.81.8141-57.8630 and 8813.81.8141-64.5400 respectively.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
8813 81.8141-64.5400 TID Welcome
Center
Reimbursement
$100,000 $100,000 N/A N/A
ATTACHMENTS:

Proposed Resolution, including the following Exhibits:

Exhibit “A” – Proposed Agreement
1 RESOLUTION NO. (N.C.S.)

RESOLUTION APPROVING AN AGREEMENT WITH THE SALINAS VALLEY TVB,

INC FOR THE OPERATION OF A CALIFORNIA WELCOME CENTER
WHEREAS, the Monterey County Convention and Visitors Bureau (MCCVB) manages a Tourism Improvement District (TID) that includes the City of Salinas; and WHEREAS, through this TID, the City of Salinas receives $2.50 per occupied room-night within the City of Salinas to spend with the stipulation that it be used to increase room-night stays within the City (Assessment); and
WHEREAS, the Salinas Valley TVB, Inc (SVTVB) operates a California Welcome Center in Salinas; and
WHEREAS, previous research has documented that the inclusion of a California Welcome Center in a community has a positive impact on local room-night stays; and WHEREAS, SVTVB has provided the City with information demonstrating that marketing and promotional activities typically conducted by Welcome Centers have the effect of increasing local overnight stays; and
WHEREAS, the City and SVTVB desire to enter into an agreement to provide for the City’s contribution of Assessment toward Welcome Center operations as a means of further promoting overnight stays at lodging facilities within the City of Salinas; and WHEREAS, the total amount of compensation to SVTVB shall not exceed the amount of Assessment actually collected, minus one percent (1%) to cover the City’s administrative costs WHEREAS, the City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378) because the Agreement and use of TID assessment does not cause a direct or foreseeable indirect physical change on or in the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby approves the attached Agreement with the SVTVB and authorizes the City Manager to execute said Agreement.

PASSED AND APPROVED this 22nd day of October, 2024, by the following vote:

AYES:

NOES:

ABSENT:
2 ABSTAIN:

APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Attached:

Exhibit A – Proposed Agreement

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Salinas Valley Tourism and Visitors Bureau
August 2021

AGREEMENT BETWEEN

THE CITY OF SALINAS AND THE
SALINAS VALLEY TVB, INC.

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Salinas Valley TVB Inc,
FY25
Contents
RECITALS ..................................................................................................................................... 4 TERMS ........................................................................................................................................... 4

1. Scope of Service. ................................................................................................................. 4

2. Term; Completion Schedule. ............................................................................................... 4

3. Compensation. ..................................................................................................................... 4

4. Billing. ................................................................................................................................. 5

5. Meet & Confer. .................................................................................................................... 5

6. Additional Copies................................................................................................................. 5

7. Responsibility of SVTVB. ................................................................................................... 5

8. Responsibility of City. ......................................................................................................... 6

9. Acceptance of Work Not a Release. .................................................................................... 6

10. Indemnification and Hold Harmless. ................................................................................... 6

11. Insurance.............................................................................................................................. 6

12. Access to Records................................................................................................................ 6

13. Non-Assignability. ............................................................................................................... 6

14. Termination.......................................................................................................................... 7

15. Compliance with Laws, Rules, and Regulations. ................................................................ 7

16. Exhibits Incorporated........................................................................................................... 7

17. Independent Contractor........................................................................................................ 7

18. Integration and Entire Agreement........................................................................................ 8

19. Jurisdiction and Venue......................................................................................................... 8

20. Severability .......................................................................................................................... 8

21. Notices. ................................................................................................................................ 8

22. Nondiscrimination................................................................................................................ 9

23. Conflict of Interest. .............................................................................................................. 9

24. Headings. ............................................................................................................................. 9

25. Attorneys’ Fees.................................................................................................................... 9

26. Non-Exclusive Agreement................................................................................................... 9

27. Rights and Obligations Under Agreement........................................................................... 9

28. Licenses................................................................................................................................ 9

29. Counterparts......................................................................................................................... 9

30. Legal Representation. ........................................................................................................ 10

31. Joint Representation........................................................................................................... 10

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Salinas Valley TVB Inc,
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32. Warranty of Authority........................................................................................................ 10

33. No Waiver of Rights. ......................................................................................................... 10

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AGREEMENT BETWEEN
THE CITY OF SALINAS AND THE SALINAS VALLEY TVB INC.

This Agreement (the “Agreement”) is made and entered into this 22nd day of October, 2024, between the City of Salinas, a California Charter city and municipal corporation (hereinafter “City”), and the Salinas Valley TVB INC, a 501(c)(4) organization (hereinafter “SVTVB”).

RECITALS
WHEREAS, pursuant to the Monterey County Tourism Improvement District (MCTID) Management District Plan (MDP), $2.50 is collected from all Salinas lodging facilities, in association with the MCTID operated by the Monterey County Convention and Visitors Bureau (MCCVB) hereinafter (the “TID Assessment”), and
WHEREAS, of TID Assessment, $2.00 per room night is remitted back to the MCCVB and the remaining $0.50 per room night is retained by the City of Salinas (hereinafter “Assessment”); and
WHEREAS, Assessment collected may be used at the discretion of the City of Salinas for the purpose of promoting overnight stays at lodging facilities within the City of Salinas; and WHEREAS, SVTVB was chosen by Visit California to operate a California Welcome Center within the City of Salinas; and
WHEREAS, SVTVB has provided the City with information demonstrating that activities typically conducted by Welcome Centers have the effect of increasing local overnight stays; and WHEREAS, the City and SVTVB desire to enter into this Agreement to provide for the City’s contribution of Assessment towards Welcome Center operations as a means of further promoting overnight stays at lodging facilities within the City of Salinas.

NOW, THEREFORE, City and SVTVB agree as follows:

TERMS

1. Scope of Service. The scope of SVTVB’s services is described in Exhibit B, attached hereto and incorporated herein by reference.

2. Term; Completion Schedule. This Agreement shall commence on July 1, 2024, and shall terminate on August 30, 2025.

3. Compensation. City agrees to pay SVTVB a total amount of funds equal to the amount of the above-referenced Assessment remitted to the City of Salinas during the period of July 1,

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2024, through August 30, 2025, less one percent (1%) of said Assessment, which shall be retained by the City of Salinas to cover its administrative costs. In no case shall compensation to SVTVB exceed the amount of Assessment collected, less 1%. SVTVB may request, and the City shall reasonably provide, a current fund balance reflecting the amounts of TID funds remitted to the City, as such records are available to the City upon the date of the request, as well as the amount of funds paid to the SVTVB to date.

4. Billing. SVTVB shall submit to City an invoice, prepared in a form satisfactory to City, describing its services and providing reports and/or information for the period covered by the invoice. Each invoice shall represent one or more whole months and individual months shall not be divided among multiple invoices. Except as specifically authorized by City, SVTVB’s invoices shall include the following information:
(A) A brief description of services performed, including verification that the services have been performed in accordance with Exhibit B;
(B) The date the services were performed;
(C) Reports and/or other information required by Exhibit B; and (D) The SVTVB’s signature.

Any such invoices shall be in full accord with any and all applicable provisions of this Agreement. Provided that the invoices meet the requirements of this Agreement, and sufficient funds are available as described under Section 3. Compensation., the City will be obligated to remit the amount in full satisfaction of each monthly invoice submitted.

City shall make payment on each such invoice within thirty (30) days of receipt; provided, however, that if SVTVB submits an invoice which is incorrect, incomplete, or not in accordance with the provisions of this Agreement (including its exhibits), City shall not be obligated to process any payment to SVTVB until thirty (30) days after a correct and complying invoice has been submitted by SVTVB. The City shall process undisputed invoices immediately.

5. Meet & Confer. SVTVB agrees to meet and confer with City or its agents or employees with regard to services as set forth herein as may be required by the City to ensure timely and adequate performance of the Agreement.

6. Additional Copies. If City requires additional copies of reports, or any other material which SVTVB is required to furnish as part of the services under this Agreement, SVTVB shall provide such additional copies as are requested, and City shall compensate SVTVB for the actual costs related to the production of such copies by SVTVB.

7. Responsibility of SVTVB. By executing this Agreement, SVTVB agrees that the services to be provided and work to be performed under this Agreement shall be performed in a fully competent manner. By executing this Agreement, SVTVB further agrees and represents to City that the SVTVB possesses, or shall arrange to secure from others, all of the necessary professional capabilities, experience, resources, and facilities necessary to provide the City the services

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contemplated under this Agreement and that City relies upon the professional skills of SVTVB to do and perform SVTVB’s work.

8. Responsibility of City. The City agrees to:
(A) Assist SVTVB by placing at its disposal all available information pertinent to this Agreement, including but not limited to, previous reports and any other data relative to this Agreement. Nothing contained herein shall obligate City to incur any expense in connection with completion of studies or acquisition of information not otherwise in the possession of City. (B) Examine all studies, reports, sketches, drawings, specifications, proposals, and other documents presented by SVTVB and render verbally or in writing, as may be appropriate, decisions pertaining thereto within a reasonable time so as not to delay the services of SVTVB. (C) René Mendez, City Manager, or his designee, shall act as City’s representative with respect to the work to be performed under this Agreement. Such person shall have the complete authority to transmit instructions, receive information, interpret, and define City’s policies and decisions with respect to materials, equipment, elements, and systems pertinent to SVTVB’s services. City may unilaterally change its representative upon notice to the SVTVB.

9. Acceptance of Work Not a Release. Acceptance by the City of the work to be performed under this Agreement does not operate as a release of SVTVB from professional responsibility for the work performed.

10. Indemnification and Hold Harmless. SVTVB shall defend, indemnify, and hold harmless the City and its officers, officials, employees, volunteers, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with SVTVB’s performance of work hereunder, including the performance of work of any of SVTVB’s subcontractors or agents, or SVTVB’s failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.

11. Insurance. SVTVB shall procure and maintain for the duration of this Agreement insurance meeting the requirements specified in Exhibit A hereto.

12. Access to Records. SVTVB shall maintain all preparatory books, records, documents, accounting ledgers, and similar materials including but not limited to calculation and survey notes relating to work performed for the City under this Agreement on file for at least three (3) years following the date of final payment to SVTVB by City. Any duly authorized representative(s) of City shall have access to such records for the purpose of inspection, audit, and copying at reasonable times during SVTVB’s usual and customary business hours. SVTVB shall provide proper facilities to City’s representative(s) for such access and inspection.

13. Non-Assignability. It is recognized by the parties hereto that a substantial inducement to City for entering into this Agreement was, and is, the professional reputation and competence of

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SVTVB. This Agreement is personal to SVTVB and shall not be assigned by it without express written approval of the City.

14. Termination.
(A) City shall have the authority to terminate this Agreement, upon ten days written notice to SVTVB, as follows:
(1) If in the City’s opinion the conduct of the SVTVB is such that the interest of the City may be impaired or prejudiced, or
(2) If in the City’s opinion the conduct of the SVTVB is in violation of the requirements of the operation of a California Welcome Center as provided by Visit California.
(B) Upon termination, SVTVB shall be entitled to payment of such amount as fairly compensates SVTVB for all work satisfactorily performed up to the date of termination based upon the SVTVB’s rates shown in Section 3 of this Agreement, except that:
(1) In the event of termination by the City for SVTVB’s default, City shall deduct from the amount due SVTVB the total amount of additional expenses incurred by City as a result of such default. Such deduction from amounts due SVTVB are made to compensate City for its actual additional costs incurred in securing satisfactory performance of the terms of this Agreement, including but not limited to, costs of engaging another SVTVB(s) for such purposes. In the event that such additional expenses shall exceed amounts otherwise due and payable to SVTVB hereunder, SVTVB shall pay City the full amount of such expense.
(C) The rights and remedy of the City and SVTVB provided under this Section are not exclusive and are in addition to any other rights and remedies provided by law or appearing in any other section of this Agreement.

15. Compliance with Laws, Rules, and Regulations. Services performed by SVTVB pursuant to this Agreement shall be performed in accordance and full compliance with all applicable federal, state, and City laws and any rules or regulations promulgated thereunder.

16. Exhibits Incorporated. All exhibits referred to in this Agreement and attached to it are hereby incorporated in it by this reference. In the event there is a conflict between any of the terms of this Agreement and any of the terms of any exhibit to the Agreement, the terms of the Agreement shall control the respective duties and liabilities of the parties.

17. Independent Contractor. It is expressly understood and agreed by both parties that SVTVB, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the City. SVTVB expressly

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warrants not to represent, at any time or in any manner, that SVTVB is an employee or servant of the City.

18. Integration and Entire Agreement. This Agreement represents the entire understanding of City and SVTVB as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters contained herein. This Agreement may not be modified or altered except by amendment in writing signed by both parties.

19. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, County of Monterey, and City of Salinas.

Jurisdiction of litigation arising from this Agreement shall be in the State of California, in the County of Monterey or in the appropriate federal court with jurisdiction over the matter.

20. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect.

21. Notices.
(A) Written notices to the City hereunder shall, until further notice by City, be addressed to:

City Manager
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
With a copy to:

City Attorney
City of Salinas
200 Lincoln Avenue
Salinas, California 93901
(B) Written notices to the SVTVB shall, until further notice by the SVTVB, be addressed to:

Craig Kaufman
Salinas Valley TVB Inc.
1 Station Place
Salinas, CA 93907
(C) The execution of any such notices by the City Manager shall be effective as to SVTVB as if it were by resolution or order of the City Council, and SVTVB shall not question the authority of the City Manager to execute any such notice.

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(D) All such notices shall either be delivered personally to the other party’s designee named above, or shall be deposited in the United States Mail, properly addressed as aforesaid, postage fully prepaid, and shall be effective the day following such deposit in the mail.

22. Nondiscrimination. During the performance of this Agreement, SVTVB shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability. SVTVB shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, creed, sex, national origin, familial status, sexual orientation, age (over 40 years) or disability.

23. Conflict of Interest. SVTVB warrants and declares that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, in any manner or degree which will render the services required under the provisions of this Agreement a violation of any applicable local, state or federal law. SVTVB further declares that, in the performance of this Agreement, no subcontractor or person having such an interest shall be employed. In the event that any conflict of interest should nevertheless hereinafter arise, SVTVB shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement. SVTVB further warrants its compliance with the Political Reform Act (Government Code section 81000 et seq.) and Salinas City Code Chapter 2A that apply to SVTVB as the result of SVTVB’s performance of the work or services pursuant to the terms of this Agreement.

24. Headings. The section headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.

25. Attorneys’ Fees. In case suit shall be brought to interpret or to enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorneys’ fees in addition to such costs as may be allowed by the Court. City’s attorneys’ fees, if awarded, shall be calculated at the market rate.

26. Non-Exclusive Agreement. This Agreement is non-exclusive and both City and SVTVB expressly reserve the right to contract with other entities for the same or similar services.

27. Rights and Obligations Under Agreement. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.

28. Licenses. If a license of any kind, which term is intended to include evidence of registration, is required of SVTVB, its representatives, agents or subcontractors by federal, state or local law, SVTVB warrants that such license has been obtained, is valid and in good standing, and that any applicable bond posted in accordance with applicable laws and regulations.

29. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single agreement.

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30. Legal Representation. Each party affirms that it has been represented, if it so chose, by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect. Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.

31. Joint Representation. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

32. Warranty of Authority. Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

33. No Waiver of Rights. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any of the terms of this Agreement shall not constitute a waiver thereof.

Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or any other provision. A waiver by the City of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement.

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the date first written above.

CITY OF SALINAS
____________________________
René Mendez
City Manager
APPROVED AS TO FORM:
_________________________
□Christopher A. Callihan, City Attorney, or
□Rhonda Combs, Assistant City Attorney

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Salinas Valley TVB Inc,
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Salinas Valley TVB INC.
___________________________
Craig Kaufman
Executive Director

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Exhibit A
Insurance Requirements
SVTVB shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the SVTVB, his agents, representatives, employees, or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
(A)Commercial General Liability (“CGL”): Insurance Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if SVTVB has no owned autos, hired and non-owned, with limits no less than $1,000,000 per accident for bodily injury and property damage.
(C)Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
(D)Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.

If the SVTVB maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or higher limits maintained by the SVTVB. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the SVTVB including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the SVTVB’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

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Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the SVTVB’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the SVTVB’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
SVTVB hereby grants to City a waiver of any right to subrogation which any insurer of said SVTVB may acquire against the City by virtue of the payment of any loss under such insurance.

SVTVB agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the SVTVB, its employees, agents, and subcontractors.

Self-Insured Retentions
Self-insured retentions must be declared by SVTVB to and approved by the City. At the option of the City, SVTVB shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the SVTVB shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of this Agreement or the beginning of Agreement work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, the SVTVB must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.

4. A copy of the claims reporting requirements must be submitted to the City for review.

Verification of Coverage
SVTVB shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All

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certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the SVTVB’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Subcontractors
SVTVB shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and SVTVB shall ensure that Entity is an additional insured on insurance required from such sub-SVTVBs and/or subcontractors.

Maintenance of Insurance
Maintenance of insurance by SVTVB as specified shall in no way be interpreted as relieving SVTVB of its indemnification obligations or any responsibility whatsoever and the SVTVB may carry, at its own expense, such additional insurance as it deems necessary.

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Exhibit B
The SVTVB shall operate a California Welcome Center (“Welcome Center”) that is officially recognized by Visit California. To accomplish this, SVTVB shall perform the following tasks:

A. The SVTVB shall continue to operate the California Welcome Center within the City of Salinas and shall be responsible for ensuring that said Center is operated in accordance with the requirements of Visit California. SVTVB shall employ staff of appropriate quantity and skill so that the Welcome Center is open to the public seven days per week for the duration of this contract. In the event that this staff member is unable to perform his/her duties, or in the event Welcome Center at any point becomes unable to remain open seven days per week, Welcome Center shall employ contract labor or take other means necessary to maintain uninterrupted seven-day-per-week operations. The requirement to remain open shall be waived for any holidays recognized by the City of Salinas. This Section shall be inapplicable if the Welcome Center is required to close pursuant to a lawful health order issued by a state or local government, or if directed to do so by Visit California.

B. SVTVB shall provide monthly reports to the City of Salinas. These reports shall include information sufficient to enable the City to report on the success of the Welcome Center in increasing the number of overnight stays within the City of Salinas. This information shall include, but is not limited to, the number of visitors to the Center (on a daily basis), an itemized summary of marketing materials (whether presented electronically or on a physical medium such as paper or canvas) which provide information regarding potential lodging options within the City of Salinas, an itemized list of additional marketing materials used to attract visitors to the Welcome Center or the Salinas area, a summary (when available) of how many printed materials were provided to visitors, the number of visitors to SVTVB’s website, and any additional information which can be collected or derived from collected data using formulas or software commonly utilized and accepted throughout the industry.

C. SVTVB shall meet and confer with the hotel operators within the City of Salinas, individually or collectively, on a reasonable basis, but not less than once per year, to discuss opportunities for the Welcome Center to increase the number of overnight stays within the City of Salinas.

D. SVTVB shall convene once a month with city staff, MCCVB and other stakeholders to collaborate on strategies aimed at boosting overnight stays within the City of Salinas.

E. As part of efforts to boost tourism in the City of Salinas, the Salinas Valley TVB Inc will initiate a pilot program to promote overnights stays. This campaign should focus on:
a. Highlighting the City’s unique attractions and local events. b. Collaborating with with local businesses to create promotional packages. c. Developing target marketing strategies to reach potential visitors. d. Enhancing awareness of available accommodations.

City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-609, Version: 1
Salinas Youth Council Pilot Program
Approve a Resolution establishing a City of Salinas Youth Council Pilot Program through July 31, 2025.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: ADMINISTRATION
FROM: SOPHIA ROME, COMMUNITY RELATIONS MANAGER
TITLE: SALINAS YOUTH COUNCIL PILOT PROGRAM
RECOMMENDED MOTION:

A motion to approve a Resolution establishing a City of Salinas Youth Council Pilot Program through July 31, 2025.

EXECUTIVE SUMMARY:

The Salinas City Council identified establishment of a youth commission as a priority in the Council Strategic Plan. The City’s 2024 Youth Intern team conducted research and made the recommendation to the City Manager to establish a youth council to expand the impact and engagement of the body compared to the limited focus area of a youth commission. The pilot program will allow the City to work with youth to establish a sustainable program that provides youth leadership development and civic engagement opportunities and will align the Youth Councilmember terms with the school year.

BACKGROUND:

The City’s Youth Commission program has been inactive for over five years. In the 2022 Strategic Plan update, the City Council identified reestablishment of a youth commission as a strategy under the Youth and Seniors strategic goal. The City’s 2024 youth interns researched similar youth programs and made a recommendation to the City Manager, which included:
 Consider a youth council to expand the impact and engagement of the body compared to the limited focus area of a youth commission
 One youth councilmember from each high school
 Appointed support roles to include:
o Youth Clerk – Performs duties like those of the City Clerk and serves as the official record keeper of the Youth Council
o Youth Communications Officer – Oversees communication, outreach, and engagement efforts of the Youth Council
o Youth Diversity, Equity, and Inclusion (DEI) Officer – Makes recommendations to the Youth Council on alignment of items being considered to with the City’s DEI goals and priorities
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The goals of the pilot program are:
 Purpose – Create a sustainable youth council program that will facilitate meaningful youth participation in city government and create leadership development and civic engagement opportunities through program participation
 Partnerships – Establish community partnerships to increase interest, participation, and program sustainability
 Procedure – Finalize the policy and procedure for the Youth Council, including purview, meeting frequency, attendance at Council Meetings, and terms The Youth Council will be supported through the City Manager’s Office. Prior to the end of the pilot year, the final policy and program design will be brought back to Council for consideration.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

Youth and Seniors
 Aligns with the strategy of the establishment of a youth commission  Expands volunteer opportunities for youth
 Opportunity to continue strengthening the relationship with the school districts Effective and Culturally Responsive Government
 Supports effective governance for City commissions
 Creates opportunities to hire locally through local government awareness and civic engagement
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DEPARTMENTAL COORDINATION:

The 2024 youth interns coordinated with the Library and Community Services Department to understand the City’s prior Youth Commission program, which was incorporated into the recommendations to the City Manager.

FISCAL AND SUSTAINABILITY IMPACT
There is no direct fiscal impact associated with the establishment of a City of Salinas Youth Council Pilot Program.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)

N/A N/A N/A N/A N/A N/A N/A
ATTACHMENTS:

Resolution
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RESOLUTION NO. (N.C.S.)

SALINAS YOUTH COUNCIL PILOT PROGRAM
WHEREAS, the Salinas City Council identified establishment of a youth commission as a priority in the Council Strategic Plan; and
WHEREAS, the City’s 2024 Youth Intern team made the recommendation to the City Manager to establish a youth council to expand the impact and engagement of the body compared to the limited focus area of a youth commission; and
WHEREAS, the pilot program will allow the City to work with youth to establish a sustainable program that provides youth leadership development and civic engagement opportunities and will align the Youth Councilmember terms with the school year; and WHEREAS, prior to the end of the pilot year, the final policy and program design will be brought back to Council for adoption.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council approves the establishment of a City of Salinas Youth Council Pilot Program through July 31, 2025.

PASSED AND APPROVED this 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-614, Version: 1
2023 Annual Comprehensive Financial Report
Approve a Resolution receiving and accepting the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2023.

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CITY OF SALINAS

COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2024
DEPARTMENT: FINANCE
FROM: SELINA ANDREWS, FINANCE DIRECTOR
TITLE: 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDED MOTION:

A motion to receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2023.

EXECUTIVE SUMMARY:

The Annual Comprehensive Financial Report (ACFR) serves as a comprehensive financial document that provides an in-depth account of a government entity's financial performance, position, and cash flows over a specific fiscal year. It provides transparency, accountability, and insight into the City of Salinas’ (City) financial health, enabling stakeholders, including City Council, residents of Salinas, creditors, investors, and other interested parties, to make informed decisions.

BACKGROUND:

The City contracts with an independent certified public accountant to examine the books, records, inventories, and reports of all officers and employees who receive, handle, or disburse public funds each fiscal year (FY). The FY 2022-23 audit was performed by Pun and Associates, LLP, an experienced firm that specializes in audit services for California public agencies. The information contained in the ACFR provides detailed financial information which the Salinas community and others can use to better understand the fiscal standing of the City.

In addition, the financial information contained in the document is one element that the credit rating agencies review annually to affix a credit rating for the City’s outstanding debt obligations.

The annual audited financial statements are also required by continuing disclosure agreements for the outstanding bonds issued by the City.

In 2022, the City contracted with Pun and Associates, LLC (Auditors), a firm of Certified Public Accountants licensed to practice in the State of California, to perform the City’s annual independent audit for the Fiscal Years ended June 30, 2022, June 30, 2023, and June 30, 2024, with two one-year options to extend audit services through Fiscal Year ending June 30, 2026.

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The ACFR is prepared by the Accounting Division of the Finance Department and represents the culmination of a concerted team effort by the Finance Department staff along with significant involvement of other City Departments. The ACFR is submitted to the City Council for consideration and acceptance, and to provide the residents of Salinas, creditors, investors, taxpayers, and other interested parties an overview of the relevant financial information contained in the ACFR.

Independent Auditor’s Report
The auditor has given the City’s financial statements a “clean” audit opinion for the year ended June 30, 2023 giving reasonable assurance that the financial statements are “free of material misstatement” (Attachment 1).

Management’s Discussion and Analysis (MD&A)
The MD&A section of the report summarizes for the City on an entity-wide basis and fund type basis. Information is provided in this section with a year-to-year view, explaining how fund balances have changed between fiscal years ending June 30, 2022, and June 30, 2023. Information is also presented on the adopted General Fund budget to actuals and any significant budget adjustments made during FY 2022-23.

Statement of Net Position
The Statement of Net Position serves as a useful indicator of a government’s financial position.

The City had net assets of $245.7 million at fiscal year-end as compared to $226.1 million the prior year, an overall increase of $19.6 million over the prior fiscal year. The increase was a result of interest receivables of $1.4 million and cash and investments of $15.0 million. The largest portion of the net assets, $257.8 million, represents the City’s investment in its capital assets and infrastructure. Restricted assets of $84.1 million are resources that are subject to external restrictions on how they may be used. As of June 30, 2023, unrestricted net position is ($96.3) million compared to ($103.0) million the prior year. This means that future revenues will be needed to make up past revenue shortfalls.

Basic Financial Statements
This section contains basic financial statements, including the “entity-wide” Statement of Net Position for Governmental Funds (such as the General Fund), Proprietary Funds, and the Private Purpose Trust Funds (Fiduciary Funds). The footnotes section provides details on significant items such as the City’s cash and investments (Note 3), its long-term obligations (Certificates of Participation) related to bonded debt (Note 13), the net pension liability for both the City’s miscellaneous and safety pension plans (Note 17), and a discussion of the City’s other postemployment benefit plan (Note 18).

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Required Supplementary Information
The Schedules of Pension Plan Contributions are provided in this section.

Supplementary Information
This section provides budget to actual information for “major” and “non-major’’ Governmental Funds.

Conclusion
As noted in the auditor’s opinion, the ACFR fairly presents the fiscal year ending June 30, 2023 financial activity for the City of Salinas.

CALIFORNIA GOVERNMENT CODE §84308 APPLIES:

No.

STRATEGIC PLAN INITIATIVE:

The audited financial statements are part of upholding the Council Goal of Operational Efficiencies.

DEPARTMENTAL COORDINATION:

This staff report was coordinated with all City Departments.

FISCAL AND SUSTAINABILITY IMPACT:

There is no direct fiscal impact associated with receiving the report.

Fund Appropriation Appropriation
Name
Total
Appropriation
Amount for
recommendation
FY 24-25
Operating
Budget Page
Last Budget
Action (Date,
Resolution)
n/a n/a n/a n/a n/a n/a n/a
ATTACHMENTS:

Resolution
2023 ACFR
Page | 1
RESOLUTION NO. (N.C.S.)
A RESOLUTION ACCEPTING THE AUDITED 2023 ANNUAL COMPREHENSIVE

FINANCIAL REPORT
WHEREAS, the City contracted with The Pun Group, LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the City’s annual independent audit for the Fiscal Years ended June 30, 2022, June 30, 2023, and June 30, 2024, with two one-year options to extend audit services through Fiscal Year ending June 30, 2026; and WHEREAS, the FY 2022-23 audit was performed by Pun Group, LLP, an experienced firm that specializes in audit services for California public agencies; and WHEREAS, after an extensive audit process, the auditor has given the City’s financial statements a “clean” audit opinion for the year ended June 30, 2023, giving reasonable assurance that the financial statements are “free of material misstatement”.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council approves the Annual Comprehensive Financial Report conducted by The Pun Group, LLP for fiscal year ended June 30, 2023.

PASSED AND APPROVED this 22
nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_______________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#24-622, Version: 1
a. Existing Litigation - California Government Code section 54956.9(a), conference with legal counsel regarding, Bryan Cupak vs. City of Salinas, Workers’ Compensation Appeals Board Case Number(s): ADJ 18222644.
b. Labor Negotiations - California Government Code Section §54957.6 with its designated labor representatives Rene Mendez, City Manager; Christopher A. Callihan, City Attorney; Katherine Hogan, Assistant City Attorney; Selina Andrews, Finance Director; Marina Horta-Gallegos, Human Resources Director; Sylvia Enriquez, Human Resources Manager; and Che Johnson, Liebert Cassidy Whitmore, regarding labor relations with Service Employees International Union (SEIU), SEIU Supervisors, Salinas Municipal Employees Association/SEIU, Association of Management Personnel, Police Officers Association, Police Management Association, International Association of Firefighters, Fire Supervisors Association, Confidential Non-Management Employees, Confidential Management Employees, and Department Directors.

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Salinas City CouncilOctober 22, 2024

Salinas City Council
October 22, 2024